Chandra Company's fiscal year ends on June 30. It is June 30, 2012, and all of the 2012 entries have been made, except the following adjusting entries:

a. On March 30,2012 , Chandra paid \(\$ 3,200\) for a six-month premium for property insurance starting on that date. Cash was credited and prepaid insurance was debited for this amount.

b. At June 30,2012 , wages of \(\$ 900\) were earned by employees but not yet paid. The employees will be paid on the next pay date, July \(15,2012\).

c. On June 1,2012 , Chandra collected maintenance fees of \(\$ 450\) for two months. At that date, Chandra debited cash and credited deferred maintenance revenue for \(\$ 450\).

d. Depreciation must be recognized on a service truck that cost \(\$ 19,000\) on July 1,2011 . The truck's estimated useful life is four years with a \(\$ 3,000\) residual value.

e. Cash of \(\$ 4,200\) was collected on May 1, 2012, for services to be rendered evenly over the next year, beginning on May 1 (deferred service revenue was credited).

f. On February 1, 2012, the company borrowed \(\$ 16,000\) from a local bank and signed a 9 percent note for that amount. The principal and interest are payable on January 31, 2013.

g. On June 15,2012 , the company received from the city a tax bill for \(\$ 500\), covering property taxes on land for the first half of 2012. The amount is payable during July 2012.

h. The company earned service revenue of \(\$ 2,000\) on a special job that was completed on June 29 , 2012. Collection will be made during July 2013; no entry has been recorded.

Required:

1. Indicate whether each transaction relates to a deferred revenue, deferred expense, accrued revenue, or accrued expense.

2. Prepare the adjusting entry required for each transaction at June 30, 2012.

3. Show the effects (direction and amount) of the adjusting entries on profit and cash.