Prepare the following adjusting entries at December 31, 2018 for Eagles Company.

a. Services performed but unbilled total $1,000.

b. Interest on notes payable of $400 is accrued.

c. A two-year insurance policy was purchased on July 1, 2018. The $2,400 insurance premium was paid on that date and was debited to Prepaid Insurance.

d. Service Revenue was credited for $1,200 on June 1, 2018. The amount represents a one-year advance payment for services to be performed by Eagles Company through May31, 2019.

e. The Supplies account shows a balance of $1,000 on December 31, 2018. A physical count of the supplies on hand at this date reveals a total of $400 available.

Instructions

Prepare the necessary adjusting journal entries indicated by each item for the year ended December 31, 2018.