A review of the ledger of Crane Company at December 31, 2017, produces the following data pertaining to the preparation of annual adjusting entries.

1.Salaries and Wages Payable $0. There are eight employees. Salaries and wages are paid every Friday for the current week. Five employees receive $870 each per week, and three employees earn $590 each per week. December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December.2.Unearned Rent Revenue $382,470. The company began subleasing office space in its new building on November 1. Each tenant is required to make a $5,430 security deposit that is not refundable until occupancy is terminated. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease.

Date

Term (in months)

Monthly Rent

Number of Leases

Nov. 16$6,2005Dec. 16$6,1504

3.Prepaid Advertising $6,000. This balance consists of payments on two advertising contracts. The contracts provide for monthly advertising in two trade magazines. The terms of the contracts are as shown below.

Contract

Date

Amount

Number of Magazine Issues

A650May 1$2,40012B974Oct. 13,60024

The first advertisement runs in the month in which the contract is signed.

4.Notes Payable $62,600. This balance consists of a note for one year at an annual interest rate of12%, dated June 1.

Prepare the adjusting entries at December 31, 2017.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 2,520.)