Gilgen's Grill, an upscale restaurant on the beach, has just completed its first full year of operations on December 31, 2017.It provides meals both in its restaurant and catering.Selected balances, in alphabetical order, from the general ledger before year-end adjustments follow (All balances are normal):

Accounts Payable

42,400

Accounts Receivable

36,000

Common Stock

24,000

Cash

64,000

Equipment

91,200

Notes Payable

34,000

Prepaid Advertising

4,800

Rent Expense

12,000

Sales Revenue

196,000

Supplies

3,600

Utilities Expense

5,500

Wages Expense

108,000

An analysis of the firm's records reveals the following:

1. The balance in Prepaid Advertising represents the amount paid for newspaper advertising for 1 year.The agreement, which calls for the same amount of space each month, covers the period from February 1, 2017 to January 31, 2018.Gilgen's Grill did not advertise during its first month of operations.
2. Equipment purchased January 1, 2017, has an estimated life of eight years.
3. Utilities expense does not include the expense for December, estimated at $1,200,.The bill will not arrive until January 2018.
4. At year-end, employees have earned $12,400 in wages that will not be paid until January.
5. Supplies available at year-end amounted to $1,300
6. At year-end, unpaid interest of $400 has accrued on the notes payable.
7. The firm's lease calls for rent of $1,000 per month payable on the first of each month, plus an amount equal to 1% of annual sales,The rental percentage is payable within 15 days after the end of the year.

INSTRUCTIONS:Prepare an adjusted entries in journal entry form