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The following information relates to S Company at the end of 2017. S's accounting period is the calendar year.
1. Employees are paid every Friday for the five-day week ending on that day. Salaries amount to $5,000 per week. The accounting period ends on a Thursday.
2. A note for $12,000 was received from a customer in a sales transaction on April 1, 2017. The note matures in one year and bears 8% interest.
3. On September 1, 2017, S borrowed $10,000 cash by signing a note payable due in one year at 6% interest.
Using the information given above, prepare the necessary adjusting entries at December 31, 2017.
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