Mellor Towing Company provides hauling and delivery services for other businesses. It is at the end of its accounting year ending December $31.$ The following data that must be considered were developed from the company$$s records and related documents:

On January $1$ of the current year, the company purchased a new hauling van at a cash cost of $$24,800.$ Depreciation estimated at $$3,400$ for the year has not been recorded for the current year.

During the current year, office supplies amounting to $$840$ were purchased for cash and debited in full to Supplies. At the end of last year, the count of supplies remaining on hand was $$310.$ The inventory of supplies counted on hand at the end of the current year was $$350.$

On December $31$ of the current year, Lanie$$s Garage completed repairs on one of Mellor Towing$$s trucks at a cost of $$1,150$; the amount is not yet recorded by Mellor Towing and by agreement will be paid during January of next year.

On December $31$ of the current year, property taxes on land owned during the current year were estimated at $$1,470.$ The taxes have not been recorded and will be paid in the next year when billed.

On December $31$ of the current year, the company completed towing service for an out$-$of$-$state company for $$7,300$ payable by the customer within $30$ days. No cash has been collected, and no journal entry has been made for this transaction.

On July $1$ of the current year, a three$-$year insurance premium on equipment in the amount of $$660$ was paid and debited in full to Prepaid Insurance on that date. Coverage began on July $1$ of the current year.

On October $1$ of the current year, the company borrowed $$8,400$ from the local bank on a two$-$year, $12$ percent note payable. The principal plus interest is payable at the end of $24$ months.

The income before any of the adjustments or income taxes was $$34,000.$ The company$$s income tax rate is $40$ percent. $($Hint: Compute adjusted pre$-$tax income based on $($a$)$ through $($g$)$ to determine income tax expense.$)$

$2.$ Prepare the adjusting entry required for each transaction at December $31$ of the current year.

Note: Round the income tax computation to the nearest dollar. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.