Problem 1 Prepare adjusting entries as of December 31 for the following (assume company has not made any adjusting entries during the year). 1. On October 1 the company received $24,000 as payment in advance for services to be rendered for the 8 month period starting October 1. The $24,000 was recorded as deferred revenue when received. 2. At the start of the year the company had $2,200 of supplies on hand. During the year the company purchased $15,100 of supplies. At year end supplies on hand totaled $3,100. The company records supplies in an asset account. 3. On March 1 the company borrowed $42,000 by signing a 15-month, 8% note payable. Interest and principal are due at maturity. 4. On November 1 the company paid $60,000 for rental of warehouse space for a six month period starting November 1. The payment was recorded as rent expense