Enchanted Forest, a large campground in South Carolina, adjusts its accounts monthly. Most guests of the campground pay at the time they check out, and the amounts collected are credited to Camper revenue. The following information is available as a source for preparing the adjusting entries at December $31$:

Enchanted Forest invests some of its excess cash in certificates of deposit $($CDs$)$ with its local bank. Accrued Interest revenue on its CDs at December $31$ is $$400.$ None of the interest has yet been received. $($Debit Interest receivable.$)$

A six$-$month bank loan in the amount of $$12,000$ had been obtained on September $1.$ Interest is to be computed at an annual rate of $8\mathrm{.}5$ percent and is payable when the loan becomes due.

Depreciation on buildings owned by the campground is based on a $25-$year life. The original cost of the buildings was $$600,000.$ The Accumulated Depreciation: Buildings account has a credit balance of $$310,000$ at December $31,$ prior to the adjusting entry process. The straight$-$line method of depreciation is used.

Management signed an agreement to let Boy Scout Troop $538$ of Lewisburg, Pennsylvania, use the campground in June of next year. The agreement specifies that the Boy Scouts will pay a daily rate of $$15$ per campsite, with a clause providing a minimum total charge of $$1,475.$

Salaries earned by campground employees that have not yet been paid amount to $$1,250.$

As of December $31,$ Enchanted Forest has earned $$2,400$ of revenue from current campers who will not be billed until they check out. $($Debit Camper revenue receivable.$)$

Several lakefront campsites are currently being leased on a long$-$term basis by a group of senior citizens. Six months' rent of $$5,400$ was collected in advance and credited to Unearned Camper revenue on October $1$ of the current year.

A bus to carry campers to and from town and the airport had been rented the first week of December at a daily rate of $$40.$ At December $31,$ no rental payment has been made, although the campground has had use of the bus for $25$ days.

Unrecorded Income taxes expense accrued in December amounts to $$8,400.$ This amount will not be paid until January $15.$

Required:

For each of the above numbered paragraphs, prepare the necessary adjusting entry.

Using these descriptions, identify the type of each adjusting entry.

Indicate the effects that each of the adjustments in part a will have on the following six total amounts in the campground$$s financial statements for the month of December. Select the letters I for increase, D for decrease, and NE for no effect. Adjusting entry $1$ is provided as an example.

What is the amount of Interest expense recognized for the entire current year on the $$12,000$ bank loan obtained September $1?$

Compute the book value of the campground's buildings to be reported in the current year's December $31$ balance sheet. $($Refer to paragraph $3.)$