Phoebes Plumbing, a firm that provides plumbing services, has just completed a full year of operations on 30 June 2020. An analysis of the firms records reveals the following:

(i) On 1 January, the firm purchased a new machine for $75,000. Depreciation expense for the six months ended on 30 June 2020 is $7,500.

(ii) The supplies account had a $135 debit balance on 1 July. Supplies of $545 were purchased during the year and $120 of supplies are on hand as at 30 June.

(iii) A one year insurance policy was purchased on 1 May. It cost $3,000 and was recorded in the prepaid insurance account.

(iv) Phoebes Plumbing has a number of annual maintenance contracts with its customers. These contracts are for the 12 months ending 31 December. This year $60,000 was received in advance for these contracts. The firm recorded these amounts in unearned revenue.

(v) The firm has 2 employees who each earn $200 a day. They both worked the last 4 days in June for which they have not been paid.

(vi) The firm has a bank loan of $100,000. The interest owing on this loan at 30 June is $2,500.

(vii) Invoices representing $2,000 of services performed during the month have not been recorded as at 30 June.

Required:

Prepare the adjusting journal entries for the year ended 30 June 2020. Ignore GST. (Explanations not required) (7 marks)