Prepare the journal entries to record the initial transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Prepare the adjusting entries required on December 31, assuming Willow records adjusting entries annually. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

The following information is available for the year-ended December 31, 2018 for Willow Landscaping Services: 1. On March 1, paid $7,920 to Alliance Insurance for a one-year insurance policy 2. On May 31, sold gift certificates for grass-cutting services and collected $4,280. On December 31, Willow determined that $1,640 of these certificates had not yet been redeemed. 3. Paid $9,360 cash on August 1, for six months of rent in advance 4. On October 1, a commercial service customer paid $17,160 as full payment for a one-year contract to be fulfilled on a monthly basis 5. On December 1, purchased equipment for $26,520 cash with an estimated useful life of 10 years