Grasshopper Lawn Service provides general lawn maintenance to customers. The company’s fiscal year-end is December 31. Information necessary to prepare the year-end adjusting entries appears below.
1. On October 1, 2021, Grasshopper lent $60,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022.
2. On November 1, 2021, the company paid its landlord $7,500 representing rent for the months of November through January. Prepaid Rent was debited for the entire amount.
3. On August 1, 2021, Grasshopper collected $12,000 in advance rent from another company that is renting a portion of Grasshopper’s building. The $12,000 represents one year’s rent, and the entire amount was credited to Deferred Revenue.
4. Depreciation for the year is $18,000.
5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,000. The company records vacation pay as Salaries Expense.
6. Grasshopper began the year with $17,000 in its Supplies account. During the year $62,000 in supplies were purchased and debited to the Supplies account. At year-end, supplies costing $22,000 remain on hand.

Required:
Prepare the necessary adjusting entries on December 31, 2021.