10 Marks): Show all calculations

1. On April 30, 2019, our company lent $20,000 to a supplier of speciality gaming equipment. The supplier signed a 11-month, 8% promissory note, promising to pay the loan principal with accrued interest on maturity.

2. On June 1, 2019, our company sold annual seasons tickets for admission to rides such as the Gargantuan Ferris Wheel. The season is year-around. The annual seasons ticket sales totalled $2,305,000 on that date.

3. On October 1, 2019, our company purchased a two-year liability insurance policy for $20,160. The policy begins coverage on October 1, 2019.

4. Our company is open five days a week, Thursdays to Monday. Employees are paid $5,750 in salaries every two weeks. Employees were last paid on Friday, December 27 (up to and including Friday of that week). Ignore any statutory holidays in your calculations. Employees will next be paid on Friday, January 10, 2020.

Instructions

a) For each of the above transactions, prepare the year end adjusting entry, required as of fiscal year-end, December 31, 2019. Show all calculations.

b) Record the March 31, 2020 entry for the note receivable if the supplier dishonors the note. Assume that eventual collection of the note is expected.