On July 1, 20X1, Cherie Wang established Cherie Wang Financial Services. Selected transactions for the first few days of July follow. DATE TRANSACTIONS 20x1 Julyl Signed a lease for an office and issued Check 101 for $14,700 to pay the rent in advance for six months. 1 Borrowed money from Bancorp West by issuing a four-month, 9 percent note for $40,000; received $38,800 because the bank deducted the interest in advance. 1 Signed an agreement with Kroll Corp. to provide financial services for one year at $7,000 per month; received the entire fee of $84,000 in advance. The $84,000 was credited to Unearned Financial Service Feen. 1 Purchased office equipment for $15,900 from Office Outfitters; issued a two-month, 12 percent note in payment. The equipment is estimated to have a useful life of five years and a $1,500 salvage value. The equipment will be depreciated using the straight-line nethod. 1 Purchased a one-year insurance policy and issued Check 102 for $1,740 to pay the entire premium. 3 Purchased office furniture for $16,080 from Furniture Warehouse; issued Check 103 for $8,480 and agreed to pay the balance in 60 days. The equipment has an estimated useful life of four years and a $1,200 salvage value. The office furniture will be depreciated using the straight-line method. 5 Purchased office supplies for $2,010 with Check 104. Assume $900 of supplies are on hand July 31, 20x1. Required: 1. Record the transactions in the general journal. Assume that the firm Initially records prepaid expenses as assets and unearned income as a liability for the year 20X1. 2. Record the adjusting journal entries that must be made on July 31, 20X1. Analyze: What balance should be reflected in Unearned Financial Service Fees at July 31, 20X1?