Under accrual basis accounting, accountants apply revenue recognition principle and expense recognition principle to determine when to record revenues and expenses. Revenue recognition principle states that revenues must be measured and recorded when they are earned, and not necessarily when the cash is received. Expense recognition principle (Matching Principle) states that expenses must be recorded in the same period as the revenues generated by the expenses, not necessarily when cash is paid. Apply these principles, when appropriate, in recording journal entries or making adjusting journal entries for the following economic events taken place on the stated date.

a. On November 30, 2015, the Microsoft Corp. hired a cleaning service company. The cashier of Microsoft paid $30,000 in cash for six months' cleaning service fees in advance. (Cleaning service coverage: From December 1, 20156 to May 31, 2016).

b. The accountant of Microsoft Corp. determined that a Microsoft employee earned salary and wages of $500,000 but these salary and wages were not yet paid as of December 31, 2015.

c. On December 31, 2015, Microsoft earned $700,000 of customized software development revenue in December 2015, and sent a bill to the customer. This amount is expected to be collected in January 2016.

d. On December 31, 2015, Microsoft signed a contract to develop a customized anti-virus software for a small financial firm and collected fees in advance, amounting to $75,000. The development will begin in February 2016, and expect to deliver in June 2016.

e. Make an adjusting journal entry on December 31, 2015 for the transaction that took place in (a).

f. On January 5, 2016, the accountant wrote a check for the salary and wages reported in (b). Make an appropriate journal entry.

g. On January 15, 2016, Microsoft collected the amount described in (c) from the customer.

h. On June 30, 2016, Microsoft delivered the anti-virus software to the customer described in (d).

i. Microsoft issued $100,000 additional common shared on July 1, 2016. The issued price of the shares was $100 per share.

j. On July 1, 2016, Microsoft issued bonds. The maturity value was $1,000,000. The stated interest rate was 5%. The market interest rate was 6%. The selling price of the bonds was 99.

k. On July 31, 2016, Microsoft purchased a new office building with a cost of $2,700,000. Microsoft paid $700,000 in cash and signed a note promising payment of the remainder, including interest at an 8% annual rate, in six months.