Target is preparing financial statements for the year ended 31 December 2016. The accountant has put together the following information for adjusting entries.

Prepare adjustments for each of these items as needed. You may prepare journal entries, use the analysis format from your textbook or show in some other way which accounts are affected, and whether each account increases or decreases. You may assume that if you show a debit to a particular account, I know whether the debit means an increase or a decrease.

1. Rent on a storage unit is paid for 6 months in advance. The most recent payment, for $15,000 was made on November 1 and added to Prepaid Rent at that time.

2. The utilities bill for December arrived on January 6 in the amount of $2,450. Payment is due by January 20.

3. A physical count of office supplies on December 31 showed $754 of supplies on hand. The balance in the Supplies account is $1,973.

4. Equipment has a useful life of 10 years and a historical cost of $96,000. It is depreciated on a straight-line basis.

5. Beklannic completed a job for a client on December 28. The client will be billed for $18,500 on January 2.

6. Another job was completed for a different client on December 26. The client paid $9,200 for job on November 1. This amount was added to Unearned Revenue.

7. Employees have earned $12,900 in wages since the last paydate. This amount will be included in first payroll in January.

8. On October 5, Beklannic converted a customer account to a note. The customer will pay the original amount of $40,000 plus interest at a 12% annual rate when the note matures on January 5