Problem 2: Adjusting journal entries. Prepare the adjusting journal entry necessary at December 31. 1. On January 1, Supplies account had a balance of $2,250. lOn June 1, the company |purchased $3,600 of supplies. A physical count of supplies on December 31 showed |$1,220 supplies on hand. 4. On May 1, the company collected $33,000 from a customer for housekeeping services to be performed from June 1 through May 31. Service Revenue was credited for $33,000 on May 1 Debit Credit Debit Credit 2. The company paid $48,000 for one year's rent on March 1. The company debited Prepaid Rent on March 1 5. On September 1, the company loaned $240,000 a customer at 6% interest. Interest is payable annually, while the principal is due at maturity in 5 years. Debit Credit Debit Credit 3. The company owns equipment costing $750,000, with $50,000 salvage value and 5 year estimated useful life. The company uses straight-line method of depreciation. 6. On December 31, the company had not received its electric bill for December Prior experience shows that $650 is a good estimate for electricity in December. Credit Debit Debit Credit