Magliochetti Moving Corp. has been in operation since January 1, 2014. It is now December 31, 2014, the end of the company€™s fiscal year. The company has not done well financially during the first year, although revenue has been fairly good. The three shareholders manage the company, but they have not given much attention to recordkeeping. In view of a serious cash shortage, they have applied to your bank for a $ 20,000 loan. You requested a complete set of financial statements. The following annual financial statements for 2014 were prepared by a clerk and then were given to the bank:

After briefly reviewing the statements and looking into the situation, you requested that the statements be redone (with some expert help) to €œ incorporate depreciation, accruals, inventory counts, income taxes, and so on.€ As a result of a review of the records and supporting documents, the following additional information was developed:
a. The inventory of maintenance supplies of $ 6,000 shown on the statement of financial position has not been adjusted for supplies used during 2014. An inventory count of the maintenance supplies on hand (unused) on December 31, 2014, showed $ 1,800. Supplies used should be debited to maintenance expense.
b. The insurance premium paid in 2014 was for 2014 and 2015; therefore, the prepaid insurance at December 31, 2014, amounted to $ 2,000. The total insurance premium was debited to prepaid insurance when paid in 2014.
c. The equipment cost $ 40,000 when purchased January 1, 2014. Depreciation expense of $ 5,000 has not been recorded for 2014.
d. Unpaid (and unrecorded) salaries at December 31, 2014, amounted to $ 2,200.
e. At December 31, 2014, transportation revenue collected in advance amounted to $ 7,000. This amount was credited to transportation revenue when the cash was collected.
f. The company is subject to an income tax rate of 30 percent.
Required:
1. Record the six adjusting entries required on December 31, 2014, based on the preceding additional information.

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MAGLIOCHETTI MOVING CORP Statement of Eamings Statement of Financial Position For the Period Ended December 31, 2014 Transportation revenue At December 31, 2014 $85,000 Assets Cash Salaries expense Maintenance expense Other expenses Total expenses 17,000 eevables 12,000 Inventory of maintenance supplies 18,000 Equipment 47,000 Prepayments 2,000 3,000 6,000 40,000 4,000 27,000 $82,000 Net earnings $38,000 Other assets Total assets Liabilities Trade payables $9,000 Shareholders' Equity Contributed capital (10,000 shares outstanding) Retained earnings Total liabilities and shareholders' equity 35,000 38,000 $82,000