could you explain this question with formula not excel?

USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (5) QUESTIONS: Magic Cleaning Services has a fiscal year end of December 31st. It is in its first year of operations. As of December 31, Magic has the following unadjusted trial balance: Account Debit Credit Cash $430,900 Accounts Receivable $158,000 Supplies $ 90,000 Building $111,000 Accounts Payable $ 46, 100 Unearned Service Revenue $ 108,000 Common Stock $ 100,000 Retained Earnings -0- Service Revenue $ 619,200 Wage Expense $ 48,600 Rent Expense $ 12,600 Utilities Expense $ 6,200 Administrative Expense $ 16,000 TOTALS $ 873,300 $ 873,300 In addition, Magic has not yet adjusted for the following: 1. The building was purchased on March 1 of the current year. It has a 30-year life, 10% salvage value and Magic uses the straight-line method for depreciation. 2. On April 1, Magic prepaid $12,600 for 12 months of rent on a warehouse. The original entry was recorded as Rent Expense. 3. By December 31st, 40% of the of the services related to the Unearned Revenues had been performed. 4. Wages of $4,800 should be accrued and are scheduled to be paid on January 2. 5. Supplies of $75,000 were still on hand at year end. 6. Based on industry averages, it is estimated that 2.5% of the accounts receivable will prove to be uncollectible. Required: To record AJE #2, Magic should do which of the following to record the correct adjustment