1. Answer the following questions:

a) On January 1, 2021, Best Buy sells a three-year extended warranty for $90. On January 1, they make the following journal entry: Dr. Cash 90 and Cr. Unearned Revenue 90. If Best Buy records any revenue earned on the extended warranty as an adjusting entry at the end of the year, what adjusting journal entry will Best Buy make on December 31, 2021?

b) Prior to closing entries, Adams Consulting has a $120,000 credit balance in the Retained Earnings t-account and $15,000 debit balance in the Dividends t-account. Adams reported net income of $40,000 during the period. What is the credit balance in Adams' Retained Earnings t-account after closing entries?

c) On January 1, 2021, Best Buy sells a three-year extended warranty for $90. On January 1, they make the following journal entry: Dr. Cash 90 and Cr. Unearned Revenue 90. If Best Buy records any revenue earned on the extended warranty as an adjusting entry at the end of the year, what adjusting journal entry will Best Buy make on December 31, 2021?

d). True or false: If a company reports $380,000 in its Property and Equipment t-account and $140,000 in its Accumulated Depreciation t-account, the balance for 'Property and equipment, net' on the company's balance sheet will be $380,000.