Hill Company adjusts its accounts at the end of each month. Prepare the adjusting entries required EXERCISE 4.7 at December 31 based on the following information. (Not all of these items may require adjust- Preparing Various ing entries.) Adjusting Entries LO 2,3 a. A bank loan had been obtained on December 1. Accrued interest on the loan at December 31 amounts to $1,050. No interest expense has yet been recorded. b. Depreciation of office equipment is based on an estimated life of five years. The balance in the Office Equipment account is $24,000; no change has occurred in the account during the year. c. Interest revenue earned on United States government bonds during December amounts to $750. This accrued interest revenue has not been recorded or received as of December 31. d. On December 31, an agreement was signed to lease a truck for 12 months beginning January 1 at a rate of 35 cents a mile. Usage is expected to be 2,000 miles per month, and the contract specifies a minimum payment equivalent to 18,000 miles a year. e. The company's policy is to pay all employees up-to-date each Friday. Since December 31 fell on Monday, there was a liability to employees at December 31 for one day's pay amounting to $2,800. What's the Effect? Assume that prior to making December 3! adjusting entries, Hill Com- pany's net income was $129,350. Compute net income after December adjustments have been recorded. Show your work