1. Accrual basis vs. cash basis: Suppose Asimov Corp. noted the following. For each transaction, determine the amount of revenue or (expense), if any, that is recorded under accrual-basis accounting and under cash-basis accounting for December 2017. Event: December Accrual basis December Cash basis revenue/lexpense): revenue/lexpense): a. Salaries totaling $10,000 for employees for the last 2 weeks of December 2017 will be paid on January 15th, 2018. b. On November 27th, Asimov Corp. received $4,700 in cash from customers for services to be provided in December. On December 1st, Asimov prepays $3,000 for 6 months of insurance premiums covering December 2017 May 2018. C. d. e. Paid $2,000 in cash on December 31st, 2017 for December 2017 rent. Received $6,530 in cash from customers on December 20th for services to be provided in January 2018. 2. a. Accrual Based Accounting: Accrued interest. Suppose that on October 1st, 2017 Wells Co. borrows $56,000 from Bradbury Bank, signing a note payable. This note is due on September 30th, 2021 and has a 4% annual interest rate. Interest payments are made annually on September 30th. Record the journal entry for the original transaction that occurs on October 1st, 2017. b. Suppose Wells Co. uses an annual accounting period and that the end of Wells Co's annual accounting period is December 31st, 2017. Assume adjusting entries are only made at the end of the accounting period and no adjusting entries have been made yet. Record the adjusting entry Wells Co. should record on December 31st to recognize interest expense