Prepare the journal entries for the following transactions in a transportation Company:

Purchased supplies costing $$2,000$ for cash.

Used supplies costing $$700.$

Incurred and paid $3,000$ hours of direct labor and $1,000$ hours of indirect labor. The average hourly wage rate for both direct and indirect labor is $$10.$

Received and paid an insurance bill of $$750.$

Made monthly rent payment of $$2,500.$

Applied overhead at $$5$ per direct labor hour.

All work$-$in$-$process services was moved to cost of services and customers were billed at a rate of $$22$ per direct labor hour.

Closed all over$-$ or underapplied overhead to Cost of Services.