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Faraday Electronic Service repairs stereas and DVD plavers. During the year, Faraday engaged in the following activities: a. On September 1, Faraday paid Wausou insurance $5,760 for its liablity insurance for the next 12 months. The full amount of the prepayment was debited to prepoid insurance. b. At December 31 , Feraday estimates that $1,470 of utility costs are unrecorded and unpaid. c. Foraday rents its testing equipment from JVC. Equipment rent in the amount of $2,920 is unpaid and unrecorded at December 31 . d. In late October, Faraday agreed to become the sponsor for the sports segment of the evening news program on a local telovision station. The station billed Faradoy $3,300 for 3 months' sponsorship-November, December, and January-in advance. When these payments were made, Faraday debited prepaid advertising. At December 31,2 months' advertising has been used and 1 month remains unused. Required: 1. Prepore adjusting entries at December 31 for these four activities. If an amount box does not require an entry, leave it blank. 2. Conceptual Connection: Whot would be the effect on expenses if the adjusting entries were not made? prepaid advertising. At December 31,2 months' advertising has been used and 1 month remains unused. Required: 1. Prepare adjusting entries at December 31 for these four activities. If an amount box does not require an ent 2. Conceptual Connection: What would be the effect on expenses if the adjusting entries were not made? a. b. c. d. Cumulative effect on expenses: by $

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