The following information is available for Nicholas & Associates Inc. for the year ended December 31, 2008:
1. purchased a one-year insurance policy on May 1, 2008, for $4,620 cash.
2. Paid $6,875 for five months rent in advance on October 1, 2008.
3. Signed a contract for the provision of professional services to ABC Co. for the period December 1, 2008 to December 1, 2009. ABC Co. paid Nicholas & Associates Inc.N$21,000 on December 1, 2008 which represents the full amount of the contact. The services to ABC Co. will be provided on a consistent/equal basis over the next 12 months.
4. Purchased office supplies on December 15, 2008, for $6,200, paying $3,000 cash and the remainder on account. At December 31, 2008, a physical count was performed and it was determined that $4,700 worth of supplies remain.
5. On December 23, 2008, paid $11,250 in salaries for the pay period ending on December 21, 2008. Management determined that $5,695 represents the salaries expense accrual required at December 31, 2008.

Required
(a) For each of the above, prepare the journal entry required to record the initial transaction.
(b) For each of the above, prepare the journal entry required on December 31, 2008.