3 Annual Adjusting Journal Entries Prepare December 31 (fiscal year-end) entries for each of the following (unrelated) items. Assume that no monthly adjusting entries have been made during the year. All adjustments are made at year-end. T- accounts may help! a. The company had a beginning balance of $1,400 in supplies on hand. During the year, $7,800 of supplies were purchased and recorded as supplies on hand (also known as supplies inventory). At the end of the year, $1,200 of supplies were in the storeroom. b. The company paid rent of $180,000 for 2 years on October 1 of this year. C. The company received 2 years of rent from tenants of $150,000 on June 1 of this year. d. The company signed a $60,000, 8-month, 6% note payable on September 1. The note plus interest will be paid at the end of the 8 months. e. The company pays employees each Friday. December 31 fell on a Wednesday, and salaries are $2,500 per day. f. On December 31, the company entered into a $9,000 agreement to provide services to a new customer, with the services to be provided in January next year. g. The company accepted a 6-month note receivable of $6,000 from a customer on December 1 of the current year. The note has an annual interest rate of 12%. The note and interest will be collected at the end of the 6-month period. h. Service revenue earned, but not yet recorded, is $4,800. i. (This one is different - think about it!) The company had a beginning balance of $980 in the Supplies on Hand account. During the year, $1,740 of supplies were purchased and recorded as supplies expense (because they thought the supplies would all be used up by year-end). At the end of the year, a physical count determined that the company had $1,400 of supplies in the storeroom. j. Compute the amount of supplies actually used k. What is the correct ending balance of supplies on hand (inventory)? 1. Prepare the adjusting journal entry needed to arrive at the correct ending balances in Supplies Expense and Supplies on Hand