The following transactions took place during 2018 at Diamond Company. Prepare the adjusting journal entries for the year ended December 31, 2018.

Transaction Details 

1. Diamond has 10 employees who earn $2,000 per month each. At December 31, two months’ salaries have been earned by the employees but not paid to them. 

2. Received $10,000 cash from a customer on December 1, 2018, for services to be rendered equally for two months starting from December 1, 2018. The receipt was credited to a liability account. 

3. Purchased equipment costing $72,000 on January 1, 2018. Monthly depreciation is $1,500. 

4. Services provided but not billed amounts to $1,000. 

5. Purchased $6,000 in supplies during the year and have $1,500 on hand at December 31. There were no supplies on hand at the beginning of the year. Supplies were debited to an asset account when purchased. 

6. A three-year insurance policy was purchased for $9,000 on July 1, 2018, debiting an asset account at that time. 

7. Purchased Emaar stock on January 1, 2018. Dividend of $500 has been earned but not received or recorded prior to December 31.