Preparing Accounting Transactions and Adjustments Sloan Company has the following account balances at December 31, the end of its fiscal year (all accounts have normal balances). $1,680 61,320 4.788 Prepaid advertising Wages expense Prepaid insurance Unearned service fees Service fees earned Rental income 7.560 121,800 6.860 a. Prepare Sloan Company's accounting adjustments at December 31 using journal entries and the following additional information. 1. Prepaid advertising at December 31 is $1,120. 2. Unpaid wages earned by employees in December are $3,640. 3. Prepaid insurance at December 31 is $3,192. 4. Unearned service fees at December 31 are $4,200. 5. Rent revenue of $1,400 owed by a tenant is not recorded at December 31. Date Account Debit Credit 1. Dec. 31 0 0 0 0 To record advertising expense 2. Dec. 31 0 0 0 0 To record accrued wages. 3. Dec. 31 0 0 0 0 To record insurance expense 4. Dec. 31 0 0 0 0 To recognize fees earned 5. Dec. 31 0 0 0 0 To record rent earned but not yet recorded. b. Record journal entries for the following transactions on January 4 of the following year: 1. Payment of $6,720 cash in wages. 2. Cash receipt from the tenant of the $1,400 rent revenue. Note: List any multiple debits or any multiple credits in alphabetical order by account name. Date Account Debit Credit 1. Jan. 4 O O O O O O 0 To record payment of wages. 2. Jan. 4 0 0 0 0 To record collection of rent