7. Prepare adjusting Journal entries for the year ended December 31, for each of these separate situations. Assume that prepaid expenses are initially recorded in asset accounts and that fees collected in advance are initially recorded as liabilities. a. The Prepaid Expense Insurance has a debit balance of $30,000 before adjustment, representing a prepayment for 12 months' rent made on December 1 of the current year. b. 25% of the work related to $105,000 of cash received in advance, was performed during this period. c. Unpaid accrued salaries as of December 31 amounts to $1290. d. Work was completed for a client on December 31 in the amount of $82,000, but was not previously billed or recorded