CHAPTER 4 Adjustments, Financial Statements, and the Quality of Earnings d PPSS borrowed $30,000 from a local bank on May 1 of the current year, signing a one-year, 10 per- an cent note. The note and interest are due on May 1 of next year e. On December 31 of the current year, PPSS cleaned and winterized a customer's pool for $800, but the service was not yet recorded on December 31, fOn August 1 of the current year, PPSS purchased a two-year insurance policy for $4,200, with cover- age beginning on that date. The amount was recorded as Prepaid Insurance when paid. On December 31 of the current year, PPSS had $3,100 of pool cleaning supplies on hand. During the current year, PPSS purchased supplies costing $23,000 from Pool Corporation, Inc., and had $2.400 of supplies on hand on December 3 I of the prior year. h. PPSS estimated that depreciation on its buildings and equipment was $8,300 for the year i At December 31 of the current year, S110 of interest on investments was earned that will be received in the next year Required Prepare adjusting entries for Penny's Pool Service&Supply, Inc.,on December 31 of the current year