The following information relates to the December 31 adjustments for Kwik Print Company. The firm's fiscal year ends on December 31.

1. Weekly employee salaries for a five-day week total $ 1,800, payable on Fridays. December 31 of the current year is a Tuesday.

2. Kwik Print has $20,000 of notes payable outstanding at December 31. Interest of $200 has accrued on these notes by December 31, but will not be paid until the notes mature next year.

3. During December, Kwik Print provided $900 of printing services to clients who will be billed on January 2. The firm uses the account Fees Receivable to reflect amounts due but not yet billed.

4. Starting December 1, all maintenance work on Kwik Print's equipment is handled by Richardson Repair Company under an agreement whereby Kwik Print pays a fixed monthly charge of $400. Kwik Print paid six months' service charge in advance on December I, debiting Prepaid Maintenance for $2,400.

5. The firm paid $900 cash on December 15 for a series of radio commercials to run during December and January. One-third of the commercials have aired by December 31. The $900 payment was debited to Prepaid Advertising.

6. Starting December 16, Kwik Print rented 400 square feet of storage space from a neighboring business. The monthly rent of $0.80 per square foot is due in advance on the first of each month. Nothing was paid in December, however, because the neighbor agreed to add the rent for the one-half of December to the January 1 payment.

7. Kwik Print invested $5,000 cash in securities on December 1 and earned interest of $38 on these securities by December 31. No interest payment will be received until January, and the end-of-December market value of the securities remains at $5,000.

8. Annual depreciation on the firm's equipment is $2,175. No depreciation has been recorded during the year.

REQUIRED:

Prepare its adjusting entries required al December 31:

a. Using the financial statement effects template, and

b. In journal entry form.