Willie Clean Company gives cleaning services and has a September 30 year end. Willie Clean Company's trial balance as of 9/30/14 appears below:

Cash 50,000 Accounts Receivable 150,000 Supplies 3,000 Uniforms 6,000 Prepaid Rent 12,000 Equipment 720,000 Accounts Payable 160,000 Unearned Revenue 8,000 Notes Payable (due 6/1/16) 240,000 J. Trent, Capital 130,000 Service Revenue 200,000 Rent Revenue 6,000 Salaries Expense 328,000 Travel Expense 1,500 Insurance Expense 6,600 Interest Expense 10,000 Advertising Expense 3,600 Legal Expense 9,000 Equipment cleaning expenses 4,000

(All of the above accounts have their normal debit or credit balance)

Required: Prepare any necessary adjusting entries as 9/30/2014 in proper form. Explanations may be omitted

a. The equipment was purchased on April 1 has a useful life of 10 years with a $120,000 salvage value.

b. The Notes Payable was signed on March 1, 2014 has an interest rate of 8%, the interest is payable annually on February 28.

c. Insurance Expense represents amounts paid for the following policies:

Effective Date Policy Amount Policy Duration

2/28/14 $4,500 3 years

5/1/14 2,100 2 years

d. The rent payment of $12,000 covered the months from August 31, 2014 through December 31, 2014

e. Rent revenue relates to the receipt of $6,000 on August 1, 2014 for one year's rent in advance.

f. Willie failed to bill its clients for services covering the period from the September 1, 2014 through December 31, 2014 for $20,000.

g. An inventory of supplies on September 30, 2014 amounted to $500.

h. The amount in the travel expense account relates to a trip to Las Vegas taken by J. Willie for his mid-winter vacation.

i. The unearned revenue balance relates to $4,000 of services that have already been provided, $2,000 of refundable customer deposits and $2,000 of services that will be provided in 2015.

j. All the accounts payable have been recorded except maintenance expenses of $1,000 that cover the period 7/1/2014 to 6/30/2015.

k. One eighth of advertising expense relates to upcoming Columbus Day promotion.

l. Uniforms account consists of 40 disposable uniforms for Halloween and 60 for Thanksgiving. The Willie Cleaning Company originally purchased 150 uniforms for $7,500.

m. The legal expense represents a single annual payment to ABC Law firm as a retainer fee for services scheduled throughout 2014.

n. Employees are paid every other Friday up through the time they work. Employees will be paid $9,900 on 10/1/14. You may assume that the employees work a five day work week.

o. Willie outsources equipment cleaning expenses to a car wash. The company normally purchases a book of 10 car washes for $60. At the end of the Willie's fiscal year 40 tickets were unused.