a. Interest is owed at December 31, on a 6-month, 8% note. Allentown borrowed $105,600 from NBD on September 1. b. Allentown provides daily building maintenance services to Mack Trucks for a quarterly fee of $2,000 payable on the fifteenth of the month following the end of each quarter. No entries have been made for the services provided to Mack Trucks during the quarter ended December 31, and the related bill will not be sent until January 15 of the following year. c. On January 1, the cost of office supplies on hand was $720. During the year, office supplies with a total cost of $6,480 were purchased from Office Depot and debited to office supplies inventory. On December 31, Allentown determined the cost of office supplies on hand to be $970. d. On September 23, Allentown received a $6,966 payment from Bethlehem Steel for 9 months of maintenance services beginning on October 1. The entire amount was credited to unearned service revenue when received. Required: 1. Prepare the appropriate adjusting entries at December 31. If an amount box does not require an entry, leave it blank. a. Dec. 31 18 b. Dec 31 88 c. Dec. 31 :88 d. Dec. 31 2. Conceptual Connection: What would be the effect on the balance sheet and the income statement if the accountant failed to make the above adjusting entries? Income Statement Balance Sheet a. Interest owed at December 31 b. Maintenance services c. Office supplies d. Receipt of payment for services