Following are transactions for Michael Custodial, Inc. Assume the company’s beginning work-in-process services account balance is zero.

a. Purchased supplies costing $5,000 for cash.

b. Received and immediately paid a utility bill, $600.

c. Used supplies costing $4,000 in doing work for a customer.

d. Incurred and paid 2,500 hours of direct labor and 1,250 hours of indirect labor. The average hourly wage rate for both direct and indirect labor is $6.

e. Made monthly rent payment, $4,000.

f. Applied overhead at $5 per direct labor hour.

g. Michael bills its customers at a rate of $30 per direct labor hour. All work in process was moved to Cost of Services.

h. Closed all under- or over-applied overhead to Cost of Services.

Required:

Prepare the journal entries for the above transactions.