Problem 12.1A (Static) Recording adjustments for accrued and prepaid items and unearned Income. LO 12-2, 12-3 a. b. Merchandise Inventory, before adjustment has a balance of $7,800. The newly counted inventory balance is $8.300. c. Unearned Seminar Fees has a balance of $6,300, representing prepayment by customers for five seminars to be conducted in June, July, and August 20X1. Two seminars had been conducted by June 30, 20X1. d. Prepaid Insurance has a balance of $13.800 for six months' insurance paid in advance on May 1, 20X1. e. Store equipment costing $6,530 was purchased on March 31, 20X1 . It has a salvage value of $520 and a useful life of five years, 1. Employees have earned $280 that has not been paid at June 30, 20X1. 9. The employer owes the following taxes on wages not paid at June 30, 20X1: SUTA, $8.40; FUTA, 51.68; Medicare, $4.06, and social security, $17.36 h. Management estimates uncollectible accounts expense at 1 percent of sales. This year's sales were $2,300,000 1. Prepaid Rent has a balance of $7050 for six months' rent paid in advance on March 1, 20X1. J. The Supplies account in the general ledger has a balance of $430. A count of supplies on hand at June 30, 20x1, indicated $165 of supplies remain k. The company borrowed $4,800 from Second Bancorp on June 1, 20x1, and issued a four-month note. The note bears interest at 9 percent Required: Based on the information above, record the adjusting journal entries that must be made for kisling Distributors on June 30, 20X1. The company has a June 30 fiscal year-end Journal entry worksheet