Keanu's Boat Yard Inc. is completing the accounting process for the year just ended, November 30, 2012. The transactions during 2012 have been journalized and posted. The following data with respect to adjusting entries are available:

a. Keanu cleaned and covered three boats for customers at the end of November, but did not bill the customers \(\$ 2,100\) for the service until December.

b. The Tonga family paid Keanu \(\$ 2,400\) on November 1,2012 , to store their sailboat for the winter until May 1, 2013. Keanu credited the full amount to deferred storage revenue on November 1.

c. Wages earned by employees during November 2012, unpaid and unrecorded at November 30, 2012, amounted to \(\$ 2,900\). The next payroll date will be December 5, 2012.

d. On October 1, 2012, Keanu paid \(\$ 600\) to the local newspaper for an advertisement to run every Thursday for 12 weeks. All ads have been run, except for three Thursdays in December, to complete the 12 -week contract.

e. Keanu used boat-lifting equipment that cost \(\$ 230,000\); the estimated depreciation for fiscal year 2012 is \(\$ 23,000\).

f. Boat repair supplies on hand at December 1, 2011 totalled \(\$ 15,600\). Repair supplies purchased and debited to supplies inventory during the year amounted to \(\$ 47,500\). The year-end inventory showed \(\$ 12,200\) of the supplies remaining on hand.

g. On April 1, 2012, Keanu borrowed \(\$ 150,000\) at an annual interest rate of 10 percent to expand boat storage facility. The loan requires Keanu to pay interest quarterly until the note is repaid in three years. Keanu paid quarterly interest on July 1 and October 1, 2012.

Required:

1. Identify each of these transactions as a deferred revenue, deferred expense, accrued revenue, or accrued expense.

2. Using the process illustrated in the chapter, prepare for each situation the adjusting entry that should be recorded for Keanu's at November 30, 2012.