26. NOTE: Write your answers on the journal found on the student response sheet. Construct Rentals Inc. records adjusting entries on an annual basis. The company has the following information available on accruals that must be recorded for the year ended December 31, 2020: 1. Construct Rentals Inc. has a $24,000, 5.5% note payable. Interest is payable on a monthly basis on the first of the month. Assume that Construct Rentals Inc. made the correct interest payment on December 1, 2020, and January 1, 2021. 2. Construct Rentals Inc. owns drilling equipment, which it rents to customers for $1,200 per day. On December 31, 2020, a customer has had the equipment for 9 days. Construct Rentals Inc. billed the customer for 15 days when the equipment was returned on January 7, 2021. The customer paid the full amount that day. 3. Construct Rentals Inc. received the $270 December telephone bill on January 7, 2021. The bill was paid on January 9, 2021. 4. Construct Rentals Inc. pays its employees a total of $8,000 every second Monday for work completed the two preceding weeks. Employees work a five-day week, Monday to Friday, and are paid for all statutory holidays. December 31, 2020 is a Thursday. Employees were paid on Monday, December 28, 2020, and will be paid again on Monday, January 11, 2021. 5. Construct Rentals Inc. has a $12,000, 8% note receivable with a customer. Interest is receivable every six months on October 31 and April 30. Assume the customer makes the correct payment to Construct Rentals Inc. on October 31, 2020, and April 30, 2021. Instructions: NOTE: For all journal entries, no comments are required. Where applicable, show your calculations after the entry in the 'Particulars' section. For each of the above items, do the following: (a) Prepare the adjusting journal entry required on December 31, 2020. (APP 5, COM 4) (APP 5, COM 3) (b) Prepare the journal entry to record the related cash transaction in 2021. Assume all payments and receipts are made as indicated.