Problem 1: Please make adjusting journal entries from the following information at December 31, 2010.

1. On November 1, 2010, Sarbanes Company received $36,000 rent from a new tenant for some office space. The amount was credited in full to the unearned rent account. The rent was for six months beginning November, 2010.

2. Montana Company bought a machine that cost $735,000 and has no residual value. The estimated life of the machine is 7 years. Montana has owned and used this machine all year long

3. Rajouri Company keeps a small inventory of supplies used for cleaning and maintenance purposes. On January 1, 2010, the inventory of supplies on hand was $2,600. During the year, supplies purchased were debited to the supplies inventory account in the amount of $3,750. On December 31, 2010, the inventory count of supplies in the storeroom was $1,800.

4. Wages at Manny Company for the last payroll period in December, 2010 were equal to $162,000. The wages are scheduled to be paid the first Friday in January, 2011.

5. Crystal Corporation borrowed $ 500,000 from the bank on October 1, 2010. The interest rate on the loan is 12% per year. The principal and the interest are payable to the bank on June 30, 2011.