Penny's Pool Service & Supply, Incorporated (PPSS) is completing the accounting process for the first year of operations ended on December 31. Transactions during the year have been journalized and posted. The data for the adjusting entries follows:

1. PPSS owed $7,800 in wages to the office receptionist and three assistants for working the last 10 days in December. The employees will be paid early next year.
2. On October 1 of the current fiscal year, PPSS received $24,900 from customers who prepaid pool cleaning service for one year beginning on November 1 of the current year.
3. The company received a $550 utility bill for December utility usage. It will be paid early next year.
4. PPSS borrowed $79,500 from a local bank on August 1, signing a one-year, 12 percent note. The note and interest are due on August 1 of next year.
5. On December 31, PPSS cleaned and winterized a customer's pool for $830, but the service was not yet recorded on December 31.
6. On November 1 of the current fiscal year, PPSS purchased a two-year insurance policy for $6,000, with coverage beginning on that date. The amount was recorded as Prepaid Insurance when paid.
7. On December 31, PPSS had $3,300 of pool cleaning supplies on hand after purchasing supplies costing $25,700 during the year from Pool Corporation, Incorporated.
8. PPSS estimated that depreciation on its buildings and equipment was $8,600 for the year.
9. At December 31, $140 of interest on investments was earned that will be received in the next year.
10. The company's income tax rate for the year was 22 percent.