Adjusting Entries Stall Personnel Services had the following transactions during the month of March:

1. Insurance premiums in the amount of $28,800 were paid on March 1. The policies provide coverage through the month of February of the following year.

2. Income taxes for the month of February in the amount of $20,000 were paid on March 5. Income computed before income tax for the month of March was

$80,000. Stall Personnel Services has a federal income tax rate of 32 percent. Tax expense for the month of March is not yet recorded.

3. A total of $124,000 was paid on March 20 and recorded as salary and wage expense. Salaries and wages earned by employees during March were

$160,000.

4. Payment of $60,000 for legal services to be performed in March and April was received in advance and credited to unearned service revenue. A total of 30 percent of the services was performed during the month of March.

a. Prepare the journal entries recorded by Stall Personnel Services during the month of March.

b. Prepare the adjusting entries needed at March 31.