4-8. Adjusting entries. For each of the following entries, identify whether the entry is correct. If it is income provide the correct adjusting entry in the journal provided on the next page. No entry made. The office equipment is brand new, having been purchased only one year ago $5,000. Since it is expected to last five years and have a salvage of $1,000, the bookkeeper has decided that it really shows so little wear that depreciation need not be taken this year. Advertising Expense Prepaid Advertising 700 700 The company advertised in the local paper during this month. When the bill was paid in advance of the advertising at the first of last month, the Prepaid Advertising account was debited. c. Utilities Payable Utilities Expense 900 900 A bill was received from the local utility company for $900. The bill is due next month. d 550 Supplies Expense Supplies 550 The Supplies account started the month with a balance of S1,200. At the end of the month, a count of supplies on hand indicated $550 in supplies left. 100 Interest Expense Interest Payable 100 Monev borrowed from the bank carries an interest rate of 6%. Interest was last paid a month ago and is due again in another five months. The amount borrowed is $20,000. The company accrues the interest expense monthly