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The following information relates to Fanning's Electronics on December $31.$

a$.$ The company's weekly payroll is $$8,750,$ paid each Friday for a five$-$day workweek. Assume December $31$ falls on a Monday, but the employees will not be paid their wages until Friday, January $4$ of next year.

b$.$ At the beginning of the current year, the company purchased equipment that cost $$20,000.$ Its useful life is predicted to be five years, at which time the equipment is expected to be worthless $($zero salvage value$).$

c$.$ On October $1,$ the company agreed to work on a new housing development. The company is paid $$120,000$ on October $1$ in advance of future installation of similar alarm systems in $24$ new homes. That amount was credited to the Unearned Revenue account. Between October $1$ and December $31,$ work on $20$ homes was completed.

d$.$ On September $1,$ the company purchased a $12-$month insurance policy for $$1,800.$ The transaction was recorded with an $$1,800$ debit to Prepaid Insurance.

e$.$ On December $29,$ the company completed $$7,000$ in services that have not been billed or recorded as of December $31.$

Required

Prepare any necessary adjusting entries on December $31$ of the current year related to transactions and events a through $c.$ Note: Profit and net income can be used interchangeably.

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