Problem 12.1A (Algo) Recording adjustments for accrued and prepaid items and unearned income. LO 12-2, 12-3 a.-b. Merchandise Inventory, before adjustment, has a balance of $7,100. The newly counted inventory balance is $7,600. c. Unearned Seminar Fees has a balance of $5,600, representing prepayment by customers for five seminars to be conducted in June, July, and August 201. Two seminars had been conducted by June 30, 20X1. d. Prepaid Insurance has a balance of $9,600 for six months' insurance paid in advance on May 1, 20X1. e. Store equipment costing $15,580 was purchased on March 31, 20X1. It has a salvage value of $460 and a useful life of six years. f. Employees have earned $210 that has not been paid at June 30, 20X1. g. The employer owes the following taxes on wages not paid at June 30, 20X1: SUTA, $6.30; FUTA, $1.26; Medicare, $3.05; and social security, $13.02. h. Management estimates uncollectible accounts expense at 1 percent of sales. This year's sales were $1,600,000. i. Prepaid Rent has a balance of $6,000 for six months' rent paid in advance on March 1, 20X1. j. The Supplies account in the general ledger has a balance of $360. A count of supplies on hand at