Preparing Adjusting Entries Using the Financial Statement Effects Template $($FSET$)$

DeliverAll, a mailing service, has just completed its first full year of operations on December $31.$ Its general ledger account balances before year$-$end adjustments follow; no adjusting entries have been made to the accounts at any time during the year. Assume that all balances are normal.

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

$1.$ 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 and cost each month, covers the period from February $1$ of this year to January $31$ of the following year. DeliverAll did not advertise during its first month of operations.

$2.$ Equipment, purchased January $1,$ has an estimated life of eight years.

$3.$ Utilities expense does not include expense for December, estimated at $\backslash (\backslash$$ $1,200\backslash ).$ The bill will not arrive until January of the following year.

$4.$ At year$-$end, employees have earned an additional $\backslash (\backslash$$ $3,300\backslash )$ in wages that will not be paid or recorded until January.

$5.$ Supplies available at year$-$end amount to $\backslash (\backslash$$ $3,900\backslash ).$

$6.$ At year$-$end, unpaid interest of $\backslash (\backslash$$ $1,080\backslash )$ has accrued on the notes payable.

$7.$ The company offers no retirement plan but as part of the compensation contract, the company pays other compensation of $\backslash (\backslash$$ $1,500\backslash )$ per month payable on the first of each month, plus an amount equal to $\backslash (1/2\backslash \%\backslash )$ of annual mailing fees earned. This is payable within $15$ days after the end of the year.

Required

Prepare adjusting entries using the financial statement effects template.

$-$ Note: Use negative signs with your answers, when appropriate.

$-$ Note: Select $"$N$/$A$"$ as your answer if a part of the accounting equation is not affected. Assignment Week $2$