Prepare adjusting entries for the following transactions:

(a)

The beginning balance of the Supplies account was $1,200. During the month, the company bought additional supplies in the amount of $700. At the end of the month, a physical inventory showed $300 of unused supplies.

(b)

The company has a 5% note payable in the amount of $10,000 due in 3 months. The interest expense for the month has not been recorded.

(c)

The company has two employees. The manager is paid on the 15th of every month for work performed during the first half of the month and on the 1st of the following month for the work performed during the second half of the month. His monthly salary is $4,000. The other employee is paid $600 for each 5-day work week (Monday - Friday). The last day of the month fell on Wednesday.

(d)

The unearned revenue account shows a balance of $6,000. According to the manager, 20% of that amount has been earned.

(e)

At the end of the month, $500 of services have been performed but not yet billed.

Number	Description	Debit	Credit