After learning that you have received an "A" in Nadalini's ACC 328 - Intermediate Accounting I course, your aunt (whose accountant abruptly left due to an unexpected early delivery of her baby) has approached you and asked you to help her with recording year-end adjusting entries for her company, X Co.. You soon learn that your aunt (a marketing major) calculated a reported income of $330,000 for 2030, but in doing so neglected to consider the five items stated below. Required: For any calculations below (where applicable) use a 12-month year instead of a 365 day year. ROUND ALL CURRENCY (when needed) to 2 DECIMAL PLACES. a) You realize that you must prepare adjusting entries (based on the items listed below) at December 31, 2030, in order to state the correct 2030 net income. If no entry is needed, write NO ENTRY NEEDED. (17 marks) Items: 1) Interest on a $28,920,4%, eight-year note payable was last paid on October 1, 2030. 2) On May 1, 2030, X Co. paid a year's rent in advance on a warehouse, and debited the $41,460 payment to Prepaid Rent. 3) On June 1, 2030, X Co. entered into a contract to provide services to a customer for eighteen months beginning June 1. The customer paid the $14,850 fee in full on June 1 and X Co. credited it to Service Revenue. 4) Depreciation on Office Equipment for 2030 is $9,500. 5) On December 20, 2030, X Co. paid the local newspaper $1,500 for an advertisement to be run in February of 2031, charging it to Prepaid Advertising. Required: (continued) b) In an effort to explain to (and impress) your aunt, as to why adjusting entries should have been made and their impact on net income, you show your aunt the effect of each adjusting entry (based on the five items stated above) pertaining to requirement a), on reported net income. This is accomplished by completing the chart below. (7.5 marks) Reported 2030 Net Income $330,000 Add (Deduct) Item: 1) 2) 3) 4) 5) Correct 2030 Net Income