Schaden Company recorded the following transactions in Year $2$:

$\backslash$table$[[$Event$,$Description$],[1,$On January $2,$ paid $$4,800$ in wages due from Year $1.],[2,\backslash$table$[[$On July $1,$ paid $$16,000$ in advance to rent storage space$],[$for one year.$]]],[3,\backslash$table$[[$Roceived $$7,000$ cash in advance for services to be$],[$performed in December Year $2$ and January and February$],[$Year $3]]],[4,\backslash$table$[[$Purchased $11,000$ units of inventory at $$13\mathrm{.}00$ each on$],[$account$.]]],[5,\backslash$table$[[$Sold $10,500$ units of inventory for $$21\mathrm{.}00$ each on account.$],[$Schaden uses the FIFO cost flow assumption.$]]],[6,$Collected $$198,450$ from customers on account.$],[7,$Paid for operating expenses with cash of $$82,000.],[8,$Paid $$71,500$ on previously owed accounts payable.$],[9,\backslash$table$[[$Declared and Paid a $$26,000$ cash dividend to the$],[$stockholders$.]]],[10,\backslash$table$[[$Paid the interest due on the note payable balance of$],[$$$150,000$ as of December $31,$ year $2.$ The note payable$],[$requires an annual principal payment of $$10,000$ due$],[$December $31$ and carries a $7\%$ interest rate.$]]],[11,\backslash$table$[[$Paid the annual payment due on the note payable on$],[$December $31,$ year $2.$ The note payable requires an annual$],[$principal payment of $$10,000$ due on December $31.]]]]$

Information for Year $2$ adjusting entries:

Event Description

$12$ The advance payment for rental of storage space $($Event $2)$ was made on July $1$ for a one$-$year term.

The services to be provided in the future $($Event $3)$ began

$13$ on December $1$ and the three$-$month contract started on that day.

$14$

$$5,000$ of wages have been earned by employees but not yet paid.

Schaden had the following Account Balances at January $1,$ Year $2$:

$\backslash$table$[[$Account$,\backslash$table$[[$Account Balance at$],[$January $1,$ Year $2]]],[$Accounts Payable,$$40,000$