Consider the following information related to Pendleton Consulting:

1. On October 1, 2012, Pendleton Consulting entered into an agreement to provide consulting services for six months to Soelberg Company. Soelberg agreed to pay Pendleton $750 for each month of service. Payment will be made at the end of the contract (March 31, 2013).

2. On April 30, Pendleton borrowed $40,000 from a local bank at 12%. The loan is to be repaid, with interest, after one year. As of December 31, no interest expense had been recognized.

3. On February 25, Pendleton paid $36,000 for 12 months of rent beginning on March 1.

On February 25, Pendleton made a journal entry debiting Prepaid Rent Expense.

4. At the beginning of 2012, Pendleton had $825 in supplies on hand. During 2012, Pendleton purchased $7,290 in supplies. On December 31, 2012, Pendleton had $1,035 in supplies on hand. For each item listed, prepare the necessary adjusting entries to be made on December 31, 2012.