Required: Prepare adjusting entries for December 31 (Adjusting entry only). You will lose a point or two for an unnecessary entry. The Cash account is NEVER used in any adjusting entry. 1) On August 1, the company rented some land from another company for $2,660 for a three-year time period. Wilson charged an expense account on August 1 when paid.

2) On October 1, Wilson paid $8,000 for a four-year technical service contract. Wilson will receive services evenly throughout the four-year period. The company debited the asset account, Prepaid Service Contract, on October 1.

3) On May 1, Wilson loaned $3,400 to another company on a 12%, one-year note.

4) The weekly (five-day) payroll of Wilson amounts to $2,500. All employees are paid at the close of business each Friday. December 31 falls on a Thursday.

5) Wilson borrowed $50,000 on a 1-year, 5% note on July 1. Interest is payable at maturity.

6) Wilson purchased a three-year insurance policy for $3,600 on September 1, and recorded the premium payment in an expense account.

7) In 2022, Wilson began with $1,000 in its asset account, supplies. During the year, $6,500 in supplies were purchased and debited to supplies. At year-end, supplies costing $1,250 remain on hand.