Rockville Company adjusts its accounts at the end of each month. The following has been assembled in order to prepare the required adjusting entries at December31 (1) A one-year bank loan of $360,000 at an annual interest rate of 12% had been obtained on December 1. fell on (2) The company's pays all employees up-to-date each Friday. Since December 31 Tuesday, there was a liability to employees at December 31 for two day's pay amounting to $5,900 (3) On December 1 rent on the office building had been paid for four months. Monthly rent is $3,000. (4) Depreciation of office equipment is based on a lifetime of six years. The balance in the Office Equipment account is $7,200; no change has occurred in the account during the year. (5) Fees of $7,600 were earned during the month for clients who had paid in advance