David€™s Services provides general home maintenance to customers. The company€™s fiscal year-end is December 31. The December 31, 2015, trial balance (before any adjusting entries) appears below.

Information necessary to prepare the year-end adjusting entries appears below.
a. Depreciation on the equipment for the year is $13,600.
b. Employee salaries are paid every two weeks. The last pay period ended on December 23. Salaries earned from December 24 through December 31, 2015, are $4,200.
c. On August 1, 2015, David€™s borrows $40,000 from a local bank and signs a note. The note requires interest to be paid annually on August 31 at 12%. The principal is due in four years.
d. On April 1, 2015, the company purchases insurance for $15,000 for a one-year policy to cover possible injury to workers. The entire $15,000 was debited to Prepaid Insurance at the time of the purchase.
e. $3,000 of supplies remains on hand at December 31, 2015.
f. On December 30, Mike€™s receives a utility bill of $1,900 for the month. The bill will not be paid until early January, 2016, and no entry was recorded when the bill was received.

Required:Prepare the necessary adjusting entries on December 31,2015.

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Debits S 18,100 16,200 20,400 15,000 95,000 Credits Accounts Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Salies Payable Utilities Payable Interest Payable Notes Payable Common Stock Retained Eamings Dividends Service Revenue Salaries Expense Depreciation Expense Insurance Expense Supplies Expense Utilities Expense Interest Expense S 27,200 10,500 40.000 24,000 10,500 2500 158,500 н. 11,400 S337.100 224,900 Totals S337.100