Trial Balance and Adjusting Entries Deliverall, a mailing service, has just completed its first full year of operations on December 31, 2012. The firm's general ledger account balances before year-end adjustments are given below. No adjusting entries have been made to the accounts at any time during the year. Assume that all balances are normal.

Cash	$2,530		Accounts Payable	$2,970
Accounts Receivable	5,632		Common Stock	10,489
Prepaid Advertising	1,848		Mailing Fees Earned	94,600
Supplies	6,897		Wages Expense	42,680
Equipment	46,464		Rent Expense	6,936
Notes Payable	8,250		Utilities Expense	3,322

An analysis of the firm's records reveals the following:

The balance in Prepaid Advertising represents the amount paid for newspaper advertising for one year. The agreement, which calls for the same amount of space each month, covers the period from February 1, 2012 to January 31, 2013. Deliverall did not advertise during its first month of operations.

The equipment, purchased January 1, has an estimated life of 8 years.

Utilities expense does not include expense for December estimated at $258. The bill will not arrive until January 2013.

At year-end, employees have earned $1,320 in wages that will not be paid until January.

Supplies on hand at December 31 are $1,672.

At year-end, unpaid interest of $495 has accrued on notes payable.

The firm's lease calls for rent of $578 per month payable on the first of each month, plus an amount equal to 0.5% of annual mailing fees earned. The rental percentage is payable within 15 days after the end of the year.

Required a. Demonstrate that the sum of the debits equals the sum of the credits for the unadjusted account balances shown above by preparing an unadjusted trail balance as of December 31, 2012.

b. Record adjusting entries in general journal form.