The December 31, 2021, unadjusted trial balance for Demon Deacons Corporation is presented below.

At year-end, the following additional information is available:1. The balance of Prepaid Rent, $7,200, represents payment on October 31, 2021, for rent from November 1, 2021, to April 30, 2022.2. The balance of Deferred Revenue, $3,000, represents payment in advance from a customer.By the end of the year, $750 of the services have been provided.3. An additional $700 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2022.4. The balance of Supplies, $4,000, represents the amount of office supplies on hand at the beginning of the year of $1,700 plus an additional $2,300 purchased throughout 2021. By the end of 2021, only $800 of supplies remains.

Required:1. Update account balances for the year-end information by recording any necessary adjusting entries. No prior adjustments have been made in 2021.2. Prepare an adjusted trial balance as of December 31, 2021.

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Debit Credit Accounts $10,000 Cash Accounts Receivable 15,000 Prepaid Rent Supplies 7,200 4,000 $ 3,000 Deferred Revenue Common Stock 11,000 Retained Earnings 6,000 Service Revenue 51,200 Salaries Expense 35,000 $71,200 $71,200