The following transactions and events for Stellar Corp. are being reviewed for possible adjusting entries at December 31 (the end of its accounting period). 1. Equipment used in operations cost $420,000; it was purchased on July 1, which was 3.5 years before the current December 31 year-end. It has an estimated useful life of 12 years. Straight- line depreciation is used. 2. The company estimates an increase in Allowance for Doubtful Accounts of $3,000 is required to recognize accounts receivable of $300,000 at the net amount expected to be collected. 3. At the beginning of the year, office supplies amounted to $600. During the year, office supplies of $8,800 were purchased; this amount was debited to Office Supplies Expense. An inventory of office supplies at the end of the year showed $400 still available. However, the January 1 balance of $600 is still recorded in the Office Supplies account. 4. On July 1 the company paid a three-year insurance premium of $2,160; this amount was debited to Prepaid Insurance. 5. On August 1 the company borrowed $120,000 cash from Shar Bank. The loan was for 12 months at 9% interest payable at maturity date. 6. On December 31 salaries earned by employees but not yet paid (or recorded) was $18,000. Required: Prepare the adjusting entry (or entries) that are necessary, if any, on December 31, for each item 1 through 6. Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Ref. General Journal Account Name Dr. Cr. 7. On September 1, the company loaned $60,000 cash to another company. The loan was at 10% per year and was due in six months; interest is payable at maturity. Cash was credited for $60,000, and Note Receivable was debited on September 1 for $60,000. 8. On January 1, Shipping Supplies amounted to $200. During the year, shipping supplies that cost $4,000 were purchased and debited to Shipping Supplies. At the end of the year, a physical inventory count revealed that shipping supplies still available were $800. 9. At the end of the year, property taxes for the year of $59,000 were assessed on property owned by the company. The taxes are due no later than February 1 next year. The taxes have not been recorded on the books because payment has not yet been made. 10. The company borrowed $120,000 cash from the bank on December 1. A 60-day note payable was signed at 9% interest payable on maturity date. On December 1, Cash was debited and Note Payable credited for $120,000. 11. On July 1, the company paid the city a $1,000 license fee for the next 12 months. On that date, Cash was credited and License Expense debited for $1,000. 12. The company owns three SUVS used by its executives. A six-month maintenance contract on them was signed on October 1, whereby a local garage agreed to do "all the required maintenance." Payment was made for the following six months in advance; specifically, on October 1, Cash was credited and Repair Expense was debited for $9,600. Prepare the adjusting entry (or entries) that are necessary, if any, on December 31, for each item 7 through 12. Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Ref. General Journal Account Name Dr.