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St. Thomas Yacht Services, Inc. had the following transactions during its first month of operations:

Dec 2	Borrowed $65,000 from First Bank after signing a 10 year, 4% promissory note.Â Payments are due on the last day of the month.
Dec 4	Journalized the issuance of $45,000 of $1 par value common stock at par.
Dec 7	Signed lease and paid the landlord $1,300 rent for the first month.
Dec 8	Purchased $15,000 of office furniture on account.
Dec 9	Created marketing materials, including a logo.
Dec 12	Purchased a one year insurance policy for $2,400.
Dec 15	Purchased $1,600 of cleaning supplies on account.
Dec 17	Hired 5 employees, who will be paid $11 per hour.
Dec 18	Paid $345 to have marketing materials printed.
Dec 22	Three employees were sent to distribute marketing materials along Pier 8.
Dec 23	Detailed 8 sailboats competing in the Maxi Yacht Rolex Cup this March. The bookkeeper sent an invoice for $14,000.
Dec 25	Received $3,500 in deposits to clean two 63 foot yachts.
Dec 26	Sent two employees to clean Serendipity, a 56 foot sloop. They spent 3 hours on the job.
Dec 29	Paid $66 to employees who cleaned Serendipity and $99 to employees who distributed marketing materials. (Ignore payroll taxes for this problem).
Dec 30	Sent a $1,900 invoice to Serendipity's Captain Samantha, less the $800 deposit.
Dec 31	Paid First Bank $658 representing $217 in interest plus $441 toward the principal.

On December 31, the following adjustments must be made:

The furniture, which has no salvage value and a 5 year useful life, needs to be depreciated using straight-line depreciation.Â
A physical count shows only $1,250 Â of supplies remains in the storage closet.
One month of the 1-year insurance policy has been used.
The Board of Directors did not declare dividends in January.

Complete Step 5 of the Accounting Cycle: Prepare adjusting entries. Â If no journal entry is required, indicate that in the account description.