5. Prepare adjusting journal entries on December 31, 2018 for Smith Co. for the following items. (3 points each) a) Smith Co. begins the year with $1,500 in supplies. During the year, the company purchases $4,500 in supplies and debits the amount to Supplies. At year-end, supplies costing $2,000 remain on hand. of 12% will be paid on April 30, 2019. portion of Smith's factory. The $24,000 represents one year's rent, and the entire amount is credited to b) On May 1, 2018, Smith Co. borrows $25,000 from a local bank and signs a note. Principal and interest c) On August 1, 2018, Smith Co. collects $24,000 in advance from another company that is renting a unearned revenue. d) On October 1, 2018, Smith Co. pays $4,800 for a three-year fire and liability insurance policy and deb prepaid insurance. e) The amount of salaries earned but not yet paid to employees at December 31 is S19,000