A review of the ledger of Waterway Company at December 31, 2025, produces the following data pertaining to the preparation of annual adjusting entries. 1. 2. Salaries and Wages Payable $0. There are eight employees. Salaries and wages are paid every Friday for the current week. Five employees receive $720 each per week, and three employees earn $450 each per week. December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December. Unearned Rent Revenue $345,300. The company began subleasing office space in its new building on November 1. Each tenant is required to make a $5,560 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. 1 6 $6,070 5 Dec. 1 6 $6,800 4