Mill Corporation adjusts and closes its accounts at the end of the calendar year.

Prepare the adjusting entries required at December 31 based on the following infor¬

mation. (Not all of these items may require adjusting entries.) LO8 a A bank loan had been obtained on October 1. Accrued interest on the loan at December 31 amounts to $1,200. No interest expense has been recorded, b Depreciation of office equipment is based on estimated life of 10 years. The bal¬

ance in the Office Equipment account is $26,400; no change has occurred in the account during the year.

c Interest receivable on United States government bonds owned at December 31 amounts to $1,920. This accrued interest has not been recorded, d On December 31, an agreement was signed to lease a truck for 12 months begin ning January 1 at a rate of 30 cents a mile. Usage is expected to be 1,500 miles per month and the contract specifies a minimum payment equivalent to 10,000 miles a year.