Prepare the necessary adjusting entries at its year-end of December 31, 2011, for the Jamesway Corporation for each of the following situations. No adjusting entries were made during the year.
1. On December 20, 2011, Jamesway received a $4,000 payment from a customer for services to be rendered early in 2012. Service revenue was credited.
2. On December 1, 2011, the company paid a local radio station $2,000 for 40 radio ads that were to be aired, 20 per month, throughout December and January. Prepaid advertising was debited.
3. Employee salaries for the month of December totaling $16,000 will be paid on January 7, 2012.
4. On August 31, 2011, Jamesway borrowed $60,000 from a local bank. A note was signed with principal and 8% interest to be paid on August 31, 2012.