A review of the ledger of Marin Inc. at December 31 produces the following data for the preparation of annual adjusting entries:

1.		Salaries and Wages Payable, $0. There are 8 salaried employees. 6 employees receive a salary of $1,250 each per week, and 2 employees earn $680 each per week. Employees do not work weekends. All employees worked two days after the last pay period and before December 31.
2.		Unearned Rent Revenue, $443,320. The company began subleasing condos in its new building on November 1. Each tenant has to make a $5,260 security deposit that is not refundable until occupancy is ended. At December 31, the company had the following rental contracts that were paid in full for the entire term of the lease:

Date		Term (in months)		Monthly Rent		Number of Leases
Nov. 1		6		$3,940		6
Dec. 1		6		$10,370		4

3.

Prepaid Advertising, $16,560. 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 follows:

Contract		Date		Amount		Number of magazines Issues
A650		May 1		$6,960		12
B974		Oct. 1		9,600		24

		The first advertisement runs in the month in which the contract is signed.
4.		Notes Payable, $78,480. This balance consists of a one year, 8%, note that is dated June 1.

Adjusting entries at December 31

Thanks for the help.

No. Date Account Titles and Explanation Debit 1. Dec. 31 Salaries and Wages Expense 3544 Salaries and Wages Payable 3544 2. Dec. 31 Unearned Rent Revenue 88760 Rent Revenue 88760 3. Dec. 31 Advertising Expense 5840 Prepaid Advertising 5840 4. Dec. 31 Interest Expense 3662.4 Interest Payable 3662.4 Marin is preparing for a meeting with potential investors. What is the net effect of the adjusting entries on net income? by $ Net income is