Several transactions are given below that were completed during 2011 by Story Company. Prepare the adjusting entries as of December 31, 2011, assuming no adjusting entries have been made during the year. On September 1, 2011, Zimmerman collected six months’ rent of $8,940 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $8,940. On October 1, 2011, the company borrowed $21,600 from a local bank and signed a 11 percent note for that amount. The principal and interest are payable on the maturity date, September 30, 2012.

Depreciation of $1,600 must be recognized on a service truck purchased on July 1, 2011, at a cost of $16,000. Cash of $3,300 was collected on November 1, 2011, for services to be rendered evenly over the next year beginning on November 1. Unearned Service Revenue was credited when the cash was received.

On November 1, 2011, Zimmerman paid a one-year premium for property insurance, $8,280, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount. The company earned service revenue of $4,200 on a special job that was completed December 29, 2011. Collection will be made during January 2012. No entry has been recorded. At December 31, 2011, wages earned by employees totaled $13,800. The employees will be paid on the next payroll date, January 15, 2012.

On December 31, 2011, the company estimated it owed $490 for 2011 property taxes on land. The tax will be paid when the bill is received in January 2012.