On-The-Mark Construction began operations on December 1. In setting up its accounting procedures, the company decided to debit expense accounts when it prepays its expenses and to credit revenue accounts when customers pay for services in advance. Prepare journal entries for items a through d and the adjusting entries as of its December 31 period-end for items e through g.

a. Supplies are purchased on December 1 for \($3,000\) cash. b* The company prepaid its insurance premiums for \($1,440\) cash on December 2.

e. On December 15, the company receives an advance payment of \($12,000\) cash from a customer for remodeling work.

d. On December 28, the company receives \($3,600\) cash from another customer for remodeling work to be performed in January.

e. A physical count on December 31 indicates that On-The-Mark has \($1,920\) of supplies available.

f. An analysis of the insurance policies in effect on December 31 shows that \($240\) of insurance cov- Check

(f) Cr insurance Expense erage had expired.

g. As of December 31, only one remodeling project has been worked on and completed. The \($6,300\) fee for this project had been received in advance.