Grasshopper Lawn Service provides general lawn maintenance to customers. The companys fiscal year-end is December 31. Information necessary to prepare the year-end adjusting entries appears below.

On October 1, 2021, Grasshopper lent $110,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022.

On November 1, 2021, the company paid its landlord $22,500 representing rent for the months of November through January. Prepaid Rent was debited for the entire amount.

On August 1, 2021, Grasshopper collected $27,000 in advance rent from another company that is renting a portion of Grasshoppers building. The $27,000 represents one years rent, and the entire amount was credited to Deferred Revenue.

Depreciation for the year is $23,000.

Vacation pay for the year that had been earned by employees but not paid to them or recorded is $13,000. The company records vacation pay as Salaries Expense.

Grasshopper began the year with $27,000 in its Supplies account. During the year $67,000 in supplies were purchased and debited to the Supplies account. At year-end,supplies costing $27,000 remain on hand.

Required: Prepare the necessary adjusting entries on December 31, 2021.