the following relate to eagle corporation assume a december 31 2011 year end 497252

The following relate to Eagle Corporation; assume a December 31, 2011 year end:

1. During 2011, Eagle Corporation purchased supplies for $2,500. At December 31, 2010, the supplies account reflected a balance of $750. At December 31, 2011, a count of the supplies shows $1,500 of supplies on hand.

2. Eagle Corporation leases some of its office space to another company. On October 1, 2011, Eagle received a $5,000 check from its tenant which was credited to Rent Revenue. The check is to satisfy four months of rent.

3. On February 1, 2011, Eagle borrowed $150,000 from Bank of America. The note is due in one year and carries an interest rate of 6%.

4. Eagle Corporation performed and completed services for clients in December 2011; payment for $15,000 of these services will not be collected until January.

5. On May 31, 2011, Eagle Corporation acquired equipment for $23,000. Eagle estimates that it will use the equipment for 4 years and that at the end of that period, the equipment will be worth $5,000.

Required:

1. Prepare the adjusting journal entry required (in proper format) for each of the above.

2. Prior to making the adjusting entries above, Eagle s accountant determined net income to be $8,000. Determine what Eagle should report as net income as of December 31, 2011 (show your computations for partial credit review).