$ Prepaid insurance Prepaid rent 3,750 26,100 Interest receivable Salaries payable Unearned revenue 33,000 Interest revenue 11,000 The insurance policy indicates that on December 31, 2010, only three months remain on the 48-month policy that originally cost $12,000 (purchased on April 1, 2007). Brenda's has a note receivable with $3,600 of interest due from a customer on January 1, 2011. This amount has not been recorded. The accounting records show that two-third of the revenue paid in advance by a customer on July 1, 2010, has now been earned. The company paid $26,100 for rent for nine months starting on November 1, 2010, recording the total amount as prepaid rent. At year end, Brenda's owed $13,000 worth of salaries to employees for work done in December 2010. The next payday is January 5, 2011. The salary expense has not been recorded. Requirement 1. Use the accounting equation to show the adjustments that must be made prior to the preparation of the financial statements for the year ended December 31, 2010. (Use parentheses or a minus sign when entering account decreases. Use only the necessary input lines.) Enter each transaction below into the accounting equation. Some of the account names will be abbreviated. Begin with the first adjustment; The insurance policy indicates that on December 31, 2010, only three months remain on the 48-month policy that originally cost $12,000 (purchased on April 1, 2007). Shareholders' Equity Assets Liabilities Contributed Capital + Retained Earnings Account Account Account Account + + + + Brenda's has a note receivable with $3,600 of interest due from a customer on January 1, 2011. This amount has not been recorded. Shareholders' Equity Contributed Capital + Retained Earnings Assets Liabilities + Account Account Account Account The accounting records show that two-third of the revenue paid in advance by a customer on July 1, 2010, has now been earned. Assets Liabilities + Shareholders' Equity Contributed Capital + Retained Earnings $ Account Account Account $ Account The company paid $26,100 for rent for nine months starting on November 1, 2010, recording the total amount as prepaid rent. Shareholders' Equity Assets Liabilities + Contributed Capital Account Retained Earnings Account Account Account + + At year end, Brenda's owed $13,000 worth of salaries to employees for work done in December 2010. The next payday is January 5, 2011. The salary expense has not been recorded. Shareholders' Equity Contributed Capital + Retained Earnings Assets Liabilities + Account Account Account Account Requirement 2. For the accounts shown, calculate the account balances that would be shown on Brenda's financial statements for the year ended December 31, 2010; balance sheet at December 31, 2010. Ending balance Prepaid insurance Prepaid rent Interest receivable Salaries payable Unearned revenue Interest revenue Fee income Rent expense Rent expense Insurance expense Salaries expense