2. Prepare the necessary adjusting journal entry at December 31, 2018 for each of the following transactions for Broncos. Broncos' fiscal year ends on December 31.

1) On November 1, 2018, the bar area was leased to Denver Inc. for 6 months. Broncos received $6,000 representing the first six months rent and credited unearned (deferred) rent revenue.

2)On April 1, 2018, Broncos paid $2,400 for a two-year fire and liability insurance policy and debited insurance expense.

3) On October 1, 2018, Broncos borrowed $20,000 from a local bank and signed a note. Principal and interest at 12% will be paid on September 30, 2019.

4) At year-end, there is a $1,800 debit balance in the supplies (asset) account. Only $700 of supplies remain on hand.

5)The office equipment was purchased in 2016 and is being depreciated using the straight-line method over an eight-year useful life with no salvage value.

6) With a new loan agreement, Broncos borrowed $30,000 on September 1, 2018. The principal is due to be repaid in 10 years. Interest is payable twice a year on each August 31 and February 28 at an annual rate of 10%.

7) Broncos employees work Monday through Friday, and salaries of $2,400 per week are paid each Friday. Flower Hills' year-end falls on Tuesday.

8) On December 31, 2018, Broncos received a utility bill for December electricity usage of $190 that will be paid in early January of 2019.