The following unadjusted amount was reported on Rental Entertainment Corporation's accounting records at December 31, 2015: Unearned Subscription Revenue $ 36,000

A) Determine the effect on the accounting equation of any adjusting entries necessary at December 31, 2015, for each of the following transactions:

1) During the year, Rental Entertainment sold 12-month subscriptions for its newly developed Internet service. Half of the subscriptions began October 1, 2014, while the other half began December 1, 2015.

2) Rental estimates its income taxes to be 30 percent of its estimated income of $60,000

B) Prepare the current liabilities section of Rentals balance sheet by listing any current liabilities and the related amounts as a result of the adjustments in Part A