Adjusting Entries

Allentown Services Inc. is preparing adjusting entries for the year ending December $31.$ The following data are available:

Interest is owed at December $31,$ on a $6-$month, $8\%$ note. Allentown borrowed $$100,800$ from NBD on September $1.$

Allentown provides daily building maintenance services to Mack Trucks for a quarterly fee of $$3,100$ 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.

On January $1,$ the cost of office supplies on hand was $$320.$ During the year, office supplies with a total cost of $$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.$

On September $23,$ Allentown received a $$8,244$ 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:

Question Content Area

$1.$ Prepare the appropriate adjusting entries at December $31$