Prepare the necessary adjusting entries for Digital Controls at the end of its December 31, 2024, fiscal year-end for each of the following situations. No adjusting entries were recorded during the year.
1. On March 31, 2024, the company lent $50,000 to another company. A note was signed with principal and interest at 6% payable on March 31, 2025.
2. On September 30, 2024, the company paid its landlord $12,000 representing rent for the period September 30, 2024, to September 30, 2025. Digital Controls debited prepaid rent at the time the rent was paid.
3. Supplies on hand at the end of 2023 (previous year) totaled $3,000. Additional supplies costing $5,000 were purchased during 2024 and debited to the supplies account. At the end of 2024, supplies costing $4,200 remain on hand.
4. Vacation pay of $6,000 for the year that had been earned by employees was not paid or recorded. The company records vacation pay as salaries expense.