Faraday Electronic Service repairs stereos and DvD players. During the year, faraday engaged in the following activitios: a. On September 1. Faraday paid Wausau Insurance 84,860 for its liability insurance for the next 12 months. The full ameunt of the prepayment was debited to prepaid insurance. b. At December 31 , Faraday estimates that $1,520 of utility costs are unrecorded and unpaid. c. Faraday rents its testing equipment from JVC. Fquipment rent in the amount of $1,440 is unpaid and unrecorded at December 31 , d. In late October, faraday agreed to become the sponsor for the sports segment of the evening news program on a local television station, The station billed Faraday 34,350 for 3 months' sponsorship - November, December, and January -in advance. When these payments were made, Faraday debited prepaid advertising. At December 31 , 2 months' advertising has been used and 1 month remains unused. Required: 1. Prepare adjusting entries at December 31 for these four activities. If an amount box does not require an entry. leave it blank. 2. Conceptual Coonection: What would be the effect on expenses if the adjusting entries were not made?. a. b. c. a. a. On September 1, Faraday paid Wausau Insurance $4,860 for its liability insurance for the next 12 months. The full amount of b. At December 31 , Faraday estimates that $1,520 of utility costs are unrecorded and unpaid. c. Faraday rents its testing equipment from JVC. Equipment rent in the amount of $1,440 is unpaid and unrecorded at December d. In late October, Faraday agreed to become the sponsor for the sports segment of the evening news program on a local televisio months' sponsorship-November, December, and January-in advance. When these payments were made, Faraday debited prep advertising has been used and 1 month remains unused. Required: 1. Prepare adjusting entries at December 31 for these four activities. If an amount box does not require an entry, leave it blank. 2. Conceptual Connection: What would be the effect on expenses if the adjusting entries were not made? a. b. c. d. Cumulative effect on expenses: by $