Changes - Equipment is depreciated 8% per year (not 10%); 10% of the Accounts Receivable is uncollectible (not 12%; in addition to what the text indicates is required, also do reversing entries. wages rayable on Lecember 31, 9! P3.3 (LO 3) (Adjusting Entries) A review of the ledger of Baylor Company at December 31, 2020, produces the following data pertaining to the preparation of annual adjusting entries. 1. Salaries and Wages Payable S0. There are eight employees. Salaries and wages are paid every Friday for the current week. Five employees receive 5700 each per week, and three employees earn $600 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 $429.000. The company began subleasing office space in its new building on November 1. Each tenant is required to make a $5.000 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. Term (in months) Number of Leases Date Nov. 1 Dec. 1 Monthly Rent $6.000 $8.500 5 3. Prepaid Advertising $13.200. 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 Number of Magazine Issues 12 24 An 50 1974 Amount $6.000 7.200 Mayl Oct. 1 The first advertisement runs in the month in which the contract is signed. 4. Notes Payable 560,000. This balance consists of a note for cee year at an annual interest rate of 124 dated June 1 Changes - Equipment is depreciated 8% per year (not 10%); 10% of the Accounts Receivable is uncollectible (not 12%; in addition to what the text indicates is required, also do reversing entries. wages rayable on Lecember 31, 9! P3.3 (LO 3) (Adjusting Entries) A review of the ledger of Baylor Company at December 31, 2020, produces the following data pertaining to the preparation of annual adjusting entries. 1. Salaries and Wages Payable S0. There are eight employees. Salaries and wages are paid every Friday for the current week. Five employees receive 5700 each per week, and three employees earn $600 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 $429.000. The company began subleasing office space in its new building on November 1. Each tenant is required to make a $5.000 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. Term (in months) Number of Leases Date Nov. 1 Dec. 1 Monthly Rent $6.000 $8.500 5 3. Prepaid Advertising $13.200. 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 Number of Magazine Issues 12 24 An 50 1974 Amount $6.000 7.200 Mayl Oct. 1 The first advertisement runs in the month in which the contract is signed. 4. Notes Payable 560,000. This balance consists of a note for cee year at an annual interest rate of 124 dated June 1