Aaron Lynch Co.

1. $3,000 worth of services has been provided to a customer who paid an advance amount of $4,000.

2. The equipment costing $30,000 has useful life of 4 years and its estimated salvage value is $3,000. Depreciation is provided using the straight-line depreciation method.

3. Office supplies having an original cost of $11,400 are shown on the unadjusted trial balance. Office supplies on hand at year-end amount to $3,840.

4. Prepaid insurance of $30,000 was paid for the months of November, December, January, and February.

5. The company signed a two-year $20,000 note payable on December 1, 2010. The annual interest rate on the note is 6% and is payable on the first day of each month. Accrue the interest for one month.

In the general journal, prepare the year-end adjusting entries of Aaron Lynch Co.