Barkers, Inc. had the following selected accounts in its unadjusted trial balance:

Accounts receivable $176,000

Prepaid rent 54,000

Prepaid insurance 24,000

Equipment 300,000

Accumulated depreciation-equipment 30,000

Unearned service revenue 24,000

Salary expense 130,000

Additional data:

One-third of the revenue received in advance has been earned by December 31, 2017.

The prepaid insurance represents three years premium on a policy providing coverage starting October 1, 2017.

Since the last payday, employees have earned an additional $2,000 which has not yet been paid or recorded.

The equipment has an estimated life of 6 years and no expected value at the end of its life. (Prepare the entry for depreciation expense.)

Services performed but unbilled and uncollected at year end amount to $5,000.

The prepaid rent relates to one year of rent beginning on September 1, 2017.

REQUIRED: Prepare the necessary year-end adjusting entries as of December 31, 2017