During its first year of operations, Riverside Company completed the following two transactions. The company's fiscal year ends on December 31. a. Paid and recorded wages of $143,000 during year 1: however, at the end of that year, wages of $2,600 for three days are unpaid and unrecorded because the next weekly pay day is January 6, of year 2 b. Rented office space to another party and collected $3,975 on December 12, of year 1. The rent collected was for 30 days from December 12. year 1 through January 10, year 2, and was credited in full to rent revenue. Required: 1. Prepare (a) the adjusting entry required on December 31, year 1 and (b) the journal entry required on January 6, year 2 to record the payment of any unpaid wages from December of year 1. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) 3. Determine the financial statement effects for each of the journal entries you prepared in (1) and (2). Indicate the accounts affected. amounts, and direction of the effects (+ for increases and for decreases) on the accounting equation (Enter any decreases to account balances with a minus sign.) Assets Liabilities Shareholders' Equity 1.325 Date Dec 31, year 1 (Wages) Jan 6, year 2 Dec. 10. year 1 Dec. 31. year 1 (Rent) Wage expense Wage expense Rent revenue 143,000 2,600 3,975 Deferred rent revenue Wages payable 2,600 3. Determine the financial statement effects for each of the journal entries you prepared in (1) and (2). Indicate the accounts affected. amounts, and direction of the effects (+ for increases and for decreases) on the accounting equation (Enter any decreases to account balances with a minus sign.) Assets Liabilities Shareholders' Equity 1.325 Date Dec 31, year 1 (Wages) Jan 6, year 2 Dec. 10. year 1 Dec. 31. year 1 (Rent) Wage expense Wage expense Rent revenue 143,000 2,600 3,975 Deferred rent revenue Wages payable 2,600 4. Show how the liabilities related to these transactions should be reported on the company's statement of financial position at December 31. year 1 Statement of Financial Position at December 31, Year 1 Current liabilities: Deferred rent revenue $ 1,325 Wages payable $ 2,600