LO3 Preparing an Unadjusted Trial Balance and Adjusting Entries DeliverAll, a mailing service, has just completed its first full year of operations on December 31, 2018. Its general ledger account balances before year-end adjustments follow; no adjusting entries have been made to the accounts at any time during the year. Assume that all balances are normal. P3-48. $ 2,700 9,530 Accounts payable.. $ 2,300 Cash.... . Accounts receivable Prepaid advertising. Supplies.. Equipment Notes payable.. Common stock. 5,120 Mailing fees earned Wages expense Rent expense Utilities expense 86,000 38,800 6,300 3,020 1,680 6,270 42,240 7,500 An analysis of the firm's records reveals the following. 80 1. The balance in Prepaid Advertising represents the amount paid for newspaper advertising for one year. The agreement, which calls for the same amount of space and cost each month, cov- ers the period from February 1, 201 8, to January 31, 2019. DeliverAll did not advertise during its first month of operations. 2. Equipment, purchased January 1., has an estimated life of eight years. 3. Utilities expense does not include expense for December, estimated at $325. The bill will not arrive until January 2019 4. At year-end, employees have earned an additional $1,200 in wages that will not be paid or recorded until January. 5. Supplies available at year-end amount to $1,520. 6. At year-end, unpaid interest of $450 has accrued on the notes payable. 7. The firm's lease calls for rent of $525 per month payable on the first of each month, plus an amount equal to 1/2% of annual mailing fees earned. The rental percentage is payable within 15 days after the end of the year. REQUIRED Prove that debits equal credits for its unadjusted account balances by preparing its unadjusted trial balance at December 31, 2018. Prepare its adjusting entries: (1) using the financial statement effects template, and (2) injour- nal entry form. Set up T-accounts, enter the balances above, and post the adjusting entries to them. a. b. C