1. The companies last pay period ends on December 24^th. The biweekly payroll is consistent at $500,000 per pay period.
2. Interest payment on the company bonds ($1,000,000 face value, 6%) is made semiannually on January 15^th and July 15^th.
3. The companys electric meter is read on the 15^th of each month, and the bill is not received until the first of the following month. The electric bill is consistently running $5,000 per month.
4. The company utilizes a storage facility on the other side of town. The landlord, as part of an inducement to the company, has agreed to delay the December cash payment for use until January 15^th of next year. The company signed a monthly rental agreement of $2,000 per month on December 1^st.

The direction has also asked the following questions:

1. Will these transactions require an adjusting entry? Why?
2. Is it an accrual or deferral and give your justification?
3. What are the accounts that will be debited and credited for this entry?