Exarcise 2: Prepare the Closing entries for O'Riley Financial Planners (from Exercise 1) on 12/31/2020.
Do NOT use an Income Summery account.
Exercise 3:
A. Tate Corporation received cash of $36,000 on September 1, 2020 for one year's rent in advance and
recorded the transaction with a credit to Unearned Rent Revenue. The December 31, 2020
adjusting entry is as follows: [Indent the credit account]
Date
Accounts
Debit
Credit
B. Pappy Corporation paid cash of $120,000 on June 1, 2020 for one year's rent in advance and
recorded the transaction with a debit to Prepaid Rent. The December 31, 2020 adjusting entry is
Date
Accounts
Debit
Credit
C. Panda Company purchased equipment on November 1, 2020 and gave a 4-month, 9% note with a face
value of $80,000. The December 31, 2020 adjusting entry is
Date
Accounts
Debit
Credi