The following information relates to Fanning's Electronics on December 31, 2011. The company, which uses the calendar year as its annual reporting period, initially records prepaid and unearned items in balance sheet accounts (assets and liabilities, respectively). A. Eighteen months earlier, on July 1, 2010, the company purchased equipment that cost $20,000. Its useful life is predicted to be four years, at which time the equipment is expected to be ($4,000 salvage value). The company uses straight line method. B. On October 1, 2011, the company agreed to work on a new housing development. The company is paid $120,000 on October 1 in advance of future installation of similar alarm systems in 20 new homes. That amount was credited to the Unearned Services Revenue account. Between October 1 and December 31, work on 15 homes was completed. C. On September 1, 2011, the company purchased a 12-month insurance policy for $1,800. The transaction was recorded with an $1,800 debit to Prepaid Insurance. Required: Prepare any necessary adjusting entries on December 31, 2011, in relation to transactions and events A through C