Q3. Required: 1. Prepare the adjusting journal entry for each transaction at December 31, 2019. 2. Indicate for each transaction if it refers to a deferred revenue, a deferred expense, an accrued revenue, or an accrued expense. Journal entries: 1. Cash of $9,000 was collected on June 1, 2019 for services that will be provided evenly over the next year beginning on June 1, 2019. (Deferred service revenue was credited when the transaction occurred on June 1, 2019) 2. Depreciation needs to be recorded on equipment that was purchased on November 1, 2019 at a cost of $100,000. Depreciation is estimated at $21,000 per year. 2 3. On December 31, 2019, property taxes on land owned during the year were estimated at $8,642. The taxes are not yet recorded and will be paid when they are billed in 2020. 4. As of at December 31, 2019, the company provided services to a customer for $7,000 that will be paid by the customer within 45 days. No journal entry has been made and no cash has been collected as at December 31, 2019. 5. On April 1, 2019, the company borrowed $67,000 from its financial institution and signed a 5% note payable for this amount. The principal and interest are payable on the maturity date which is March 31, 2020. 6. At December 31, 2019, wages and salaries earned by employees totalled $8,500. Staff will be paid on January 7, 2020. 7. Cash of $1,500 was received from a customer on December 31, 2019 for service work that will be done in February 2020. 8. On October 31, 2019, the company lent $3,500 to an employee on a six month, 6% note. The principal plus interest is payable by the employee on April 30, 2020