The information necessary for preparing the 2012 year-end adjusting entries for Gamecock Advertising Agency appears below. Gamecocks fiscal year-end is December 31.

a. On July 1, 2012, Gamecock receives $5,000 from a customer for advertising servicesto be given evenly over the next 10 months. Gamecock credits Unearned Revenue.

b. At the beginning of the year, Gamecocks depreciable equipment has a cost of$30,000, a five-year life, and no salvage value. The equipment is depreciated evenly(straight-line depreciation method) over the five years.

c. On May 1, 2012, the company pays $3,600 for a two-year fire and liability insurancepolicy and debits Prepaid Insurance.

d. On September 1, 2012, the company borrows $10,000 from a local bank and signs anote. Principal and interest at 12% will be paid on August 31, 2013.

e. At year-end there is a $2,200 debit balance in the Supplies (asset) account. Only $900of supplies remains on hand.

Required: Record the necessary adjusting entries on December 31, 2012. No prior adjustmentshave been made during 2012.