Marathon Magazine, Inc., has the following account balances, among others, in its trial balance at December 31 of the current year:

Debits

Credits

Supplies on Hand

$3,720

Prepaid Rent

7,200

Unearned Subscription Fees

$15,000

Subscriptions Revenue

261,000

Salaries Expense

123,000

Additional data

1. 1.The inventory of supplies on hand at December 31 amounts to $720.
2. 2.The balance in the Prepaid Rent account is for a one-year period starting October 1 of the current year.
3. 3.One-third of the $15,000 balance in Unearned Subscription Fees has been earned.
4. 4.Since the last payday, the employees of the company have earned additional salaries in the amount of $5,430.

a.Make the year-end adjusting journal entries at December 31.

b. Open ledger accounts for each of the accounts involved, enter the balances as shown in the trial balance, post the adjusting journal entries, and calculate year-end balance