During its first year of operations, Walnut Company completed the following two transactions. The annual accounting period ends December 31. a. Paid and recorded wages of $142,000 during Year 1; however, at the end of Year 1, three days' wages are unpaid and have not yet been recorded because the weekly payroll will not be paid to employees until January 6 of Year 2. Wages for the three days are $5,000. b. Collected rent revenue of $3,300 on December 12 of Year 1 for office space that Walnut rented to another company. The rent collected was for 30 days from December 12 of Year 1 to January 10 of Year 2. Required: 1. With respect to wages, provide the adjusting entry required at the end of Year 1 and the journal entry required on January 6 of Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the adjusting entry related to wages. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Journal entry worksheet Record the payment of any unpaid wages from December, Year 1. Note: Enter debits before credits. Date General Journal Debit Credit January 06 2. With respect to rent revenue, provide the journal entry for the collection of rent on December 12 and the adjusting entry required on December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the collection of rent on December 12. Note: Enter debits before credits. Date General Journal Debit Credit December 12 2. With respect to rent revenue, provide the journal entry for the collection of rent on December 12 and the adjusting entry required on December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the adjusting entry related to rent revenue. Note: Enter debits before credits. Date General Journal Debit Credit December 31 3. Show how any liabilities related to these transactions should be reported on the company's balance sheet at December 31, Year 1. WALNUT COMPANY Balance Sheet (Partial) As of December 31 Current liabilities: Total
