Problem:
Johnstone Controls had the following situations on December 2016. 1) On March 312016, the company lent $37,000 to another company. A note was signed with principal and interest at 6% payable on March 31, 2017. 2. On September 30, 2016, the company paid its landlord $16,400 representing rent for the period September 30, 2016, to September 30, 2017. 3. Supplies on hand at the end of 2015 totaled $3,290. Additional supplies costing $5,890 were purchased during 2016 and debited to the supplies account. At the end of 2016, supplies costing $3,790 remain on hand. 4. Vacation pay of $16,450 for the year that had been earned by employees was not paid or recorded. The company records vacation pay as salaries and wages expense.
Required:
Prepare the necessary adjusting entries for Johnstone Controls at the end of its December 31, 2016, fiscal year-end for each of the above situations.
Note: Please describe comprehensively and provide step by step solution.