1. On October 15, 2020, Biggin Inc. borrowed $350,000 from Bank of America at 7.5%. The loan is payable in full, with interest, on October 15, 2021. Biggin Inc. closes its books on December 31 of each year. Using T-Accoubnts or the Accounting Equation, show the entries to record the receipt of the loan and the accrued interest on December 31, 2020.

2.

The accounting records of Aeroline, LLC. show that on December 31, 2020, it has received

$795,359 in cash from customers for travel in February 2021. How would this transaction be

recorded in the books of account? Use the accounting equqtion or T-accounts.

3.

On March 29, 2020, XYZ, Corp. paid $18,000 for an insurance policy to cover the period April 1, 2020

to April 1, 2021. XYZ Corp has a year-end of December 31.

Record the purchase of the insurance policy in the books of XYZ, Corp. Also, record the

adjusting entries on December 31, 2020. Use the accouhnting equation or T-accounts.