The December 31, 2012, trial balance of a company included the following:

Debits

Credits

Accounts Receivable$176,000

Unearned Service Fees$24,000

Prepaid Rent64,000

Prepaid Insurance33,600

Equipment240,000

Accumulated Depreciation-Equipment30,000

Salaries Expense120,000

Additional data:

1.The equipment has an estimated life of 11 years and expected salvage value of $20,000 at the end of its life.

2.Delivery services performed but unbilled at year-end amount to $6,400.

3.Two-thirds of the Unearned Service Fees has been earned by December 31.

4.The prepaid rent relates to one-half of a year beginning on October 1, 2012.

5.The prepaid insurance is the annual premium on a policy providing coverage starting on September 1, 2012.

6.Since the last payday, employees have earned an additional $2,400.

Prepare the necessary adjusting entries as of December 31, 2012.(Use T-accounts to demonstrate the entries showing the balances before adjustment and balance after adjustment).