1.Prepaid Insurance $9 800. The company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on 1 July 2011, for $6 000. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on 1 January 2012 for $4 800. This policy has a term of 2 years. 2.Unearned Subscriptions $49 000. The company began selling magazine subscriptions in 2012 on an annual basis. The magazine is published monthly. The selling price of a subscription is $50. A review of subscription contracts reveals the following

Subscription	Number of
Date	Subscriptions
1 October	200
1 November	300
1 December	480
980

3.Notes Payable $40 000. This balance consists of a note for 6 months at an annual interest rate of 9%, dated 1 September. 4.Salaries Payable $0. There are eight salaried employees. Salaries are paid every Friday for the current week. Five employees receive a salary of $500 each per week, and three employees earn $800 each per week. 31 December is a Wednesday. Employees do not work weekends. All employees worked the last 3 days of December. Instructions Prepare the adjusting entries as at 31 December 2012. Dec. 31 Salaries PayableSalaries ExpenseInterest ExpenseInterest PayableSubscription RevenueInsurance ExpensePrepaid InsuranceUnearned Subscriptions Interest PayableSalaries ExpenseUnearned SubscriptionsInterest ExpensePrepaid InsuranceSalaries PayableInsurance ExpenseSubscription Revenue 2.Dec. 31 Salaries PayableUnearned SubscriptionsInterest PayableSalaries ExpenseInsurance ExpensePrepaid InsuranceSubscription RevenueInterest Expense Unearned SubscriptionsInterest ExpenseSalaries PayablePrepaid InsuranceSalaries ExpenseInterest PayableSubscription RevenueInsurance Expense 3.Dec. 31 Subscription RevenueInterest PayableSalaries ExpenseInsurance ExpenseSalaries PayableInterest ExpenseUnearned SubscriptionsPrepaid Insurance Salaries PayableInterest PayablePrepaid InsuranceSubscription RevenueInsurance ExpenseUnearned SubscriptionsSalaries ExpenseInterest Expense 4.Dec. 31 Interest ExpensePrepaid InsuranceUnearned SubscriptionsInsurance ExpenseInterest PayableSalaries ExpenseSubscription RevenueSalaries Payable Interest PayableSalaries PayablePrepaid InsuranceSalaries ExpenseUnearned SubscriptionsSubscription RevenueInterest ExpenseInsurance Expense