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Mellor Towing Company provides hauling and delivery services for other businesses. It is at the end of its accounting year ending December $31.$ The following data that must be considered were developed from the company$$s records and related documents:

On January $1$ of the current year, the company purchased a new hauling van at a cash cost of $$25,300.$ Depreciation estimated at $$2,500$ for the year has not been recorded for the current year.

During the current year, office supplies amounting to $$990$ were purchased for cash and debited in full to Supplies. At the end of last year, the count of supplies remaining on hand was $$290.$ The inventory of supplies counted on hand at the end of the current year was $$330.$

On December $31$ of the current year, Lanie$$s Garage completed repairs on one of Mellor Towing$$s trucks at a cost of $$1,010$; the amount is not yet recorded by Mellor Towing and by agreement will be paid during January of next year.

On December $31$ of the current year, property taxes on land owned during the current year were estimated at $$1,400.$ The taxes have not been recorded and will be paid in the next year when billed.

On December $31$ of the current year, the company completed towing service for an out$-$of$-$state company for $$7,300$ payable by the customer within $30$ days. No cash has been collected, and no journal entry has been made for this transaction.

On July $1$ of the current year, a three$-$year insurance premium on equipment in the amount of $$660$ was paid and debited in full to Prepaid Insurance on that date. Coverage began on July $1$ of the current year.

On October $1$ of the current year, the company borrowed $$10,800$ from the local bank on a two$-$year, $13$ percent note payable. The principal plus interest is payable at the end of $24$ months.

The income before any of the adjustments or income taxes was $$37,000.$ The company$$s income tax rate is $30$ percent. $($Hint: Compute adjusted pre$-$tax income based on $($a$)$ through $($g$)$ to determine income tax expense.$)$

P$4-3$ Part $2$

$2.$ Prepare the adjusting entry required for each transaction at December $31$ of the current year.