Blake Accounting Services has the following transactions. Its beginning work-in-process services account balance is zero.

a. Purchased supplies costing $11,000 on account.

b. Paid property tax, $20,000.

c. Paid rent, $2,000; and utilities, $700.

d. Paid support staff salaries, $35,000.

e. Used supplies costing $9,000.

f. Paid direct labor salaries, $50,000. Average rate was $10 per hour.

g. Applied overhead at $11.50 per direct labor hour.

h. Transferred $100,000 from Work-in-Process to Cost of Services and billed customers for 4,500 hours of work. Blake bills its customers $40 per direct labor hour.

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

Required:

1. Prepare the journal entries for the above transactions.

2. Determine the ending balance in the work-in-process services account.