Zimmerman Company's annual accounting year ends on December 31. It is December 31, 2017, and all of the 2017 entries except the following adjusting entries have been made: (A) On September 1, 2017, Zimmerman collected six months' rent of $8,400 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $8,400. (B) On October 1, 2017, the company borrowed $18,000 from a local bank and signed a 12 percent note for that amount. The principal and interest are payable on the maturity date, September 30, 2018. (C) Depreciation of $2,500 must be recognized on a service truck purchased on July 1, 2017, at a cost of $15,000. (D) The company earned service revenue of $4,000 on a special job that was completed December 29, 2017. Collection will be made during January 2018. No entry has been recorded. Required: 1. Indicate whether each transaction relates to a deferred revenue, deferred expense, accrued revenue, or accrued expense. 2. Prepare the adjusting entries required for each transaction at December 31, 2017. 3. Using the following headings, indicate the effect of each adjusting entry and the amount of the effect. Use + for increase, - for decrease. (Reminder: Assets = Liabilities + Stockholders' Equity; Revenues Expenses = Net Income; and Net Income accounts are closed to Retained Earnings, a part of Stockholders' Equity.) Income Statement Balance Sheet Stockholders Liabilities Equity Net Income Transaction Assets Revenues Expenses A. NE -5,600 +5,600 +5,600 NE +5,600 B. C. D