Directions The following information relates to Fanning's Electronics on December 31, 2017. The prepaid and unearned items in balance sheet accounts (assets and liabilities, company, which uses the calendar year as its annual reporting period, initally records respectively) The company's weekly payroll is $8,750, paid each Friday for a five-day workweek. a. r 31, 2017, falls on a Monday, but the employees will not be paid their wages until Friday, January 4, 2018. Eighteen months earlier, on July 1, 2016, the company purchased equipment that cost S20,000. Its useful life is predicted to be five years, at which time the equipment is expected to be worthless (zero salvage value). b. On October 1, 2017, the company agreed to work on a new housing development. The company is paid S120,000 on October 1 in advance of future installation of similar alarm systems in 24 new homes. The $120,000 was credited to the Unearned Services Revenue account. Between October 1 and December 31, work on 20 homes was completed. c