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

Dec 2	Borrowed $45,000 from First Bank after signing a 10 year, 4% promissory note.  Payments are due on the last day of the month.
Dec 4	Journalized the issuance of $60,000 of $1 par value common stock at par.
Dec 7	Signed lease and paid the landlord $1,200 rent for the first month.
Dec 8	Purchased $12,000 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 3 employees, who will be paid $11 per hour.
Dec 18	Paid $315 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 $12,000.
Dec 25	Received $4,500 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 $700 deposit.
Dec 31	Paid First Bank $456 representing $150 in interest plus $306 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. 
• A physical count shows only $1,250  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 9 of the Accounting Cycle: Prepare closing entries.

Journal

Date	Description	Debit	Credit
Dec 31
Dec 31