Chukanut Company completed the following transactions during Year 1. Chukanut’s fiscal year ends on December 31.

Required:
1. Prepare journal entries for each of these transactions.
2. Prepare all adjusting entries required on December 31. Assume that $10,000 of the office supplies purchased were used and expensed during the year.

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Jan. 20 Apr. 1 June 18 July 22 Dec. 17 31 Paid cash for office supplies (held as office supplies inventory). The invoice amount was $17,900. Borrowed $458,000 from Royal Bank for general use; signed an 12-month, 4 percent annual interest-bearing note for the money. Received a $17,000 customer deposit for services to be performed in the future. Performed $6,240 of the services paid for on June 18. Received utility bill for $8,900. Chukanut plans to pay the bill in early February. Determined wages of $12,000 were earned but not yet paid on December 31 (disregard payroll taxes).