December 31: Debit Credit Cash Notes Receivable Prepaid Rent Building Accounts Payable Unearned Fee Revenue... Capital Stock Retained Earnings Dividends S 87.000 144,000 192,000 210,000 5165,000 225,000 200,000 90,000 22,000 Fee Revenue 257,000 Wages Expense Utilities Expense. 229,000 53,000 $937,000 Totals $937,000 In order to make the adjusting entries, the following information has been assembled: a. "The notes receivable were issued on June I. The annual interest rate on the notes is 11%. Inter- est is to be received each year on May 31; accordingly, no interest has been received. The unearned fee revenue represents cash received in advance on February 1. This $225,000 relates to a three-year contract which began on February 1. It is expected that the fees will be earned evenly over the three-year contract period. As of December 31, no revenue had yet been recognized on this contract. The prepaid rent represents cash paid in advance on October 1. This $192,000 relates to a five- year rental agreement that began on October 1 recognized in association with this rental agreement As of December 31, unpaid (and unrecorded) wages totaled $17,000. b. c. d. 1. 2. Prepare the necessary adjusting journal entries. Prepare an adjusted trial balance. llsing an Adiusted Trial Balance to Prepare a Statement of Comprehensive Income