Assume that Pollys accounting year ends on December 31. Identify and analyze the effect of any necessary adjusting entries based on transactions below. Do not round intermediate calculations. If required, round your final answers to the nearest cent. Use full months instead of days when calculating interest expense.

* On May 1, land was purchased for $49,800. A 20% down payment was made, and an 18-month, 8% note was signed for the remainder. How does this entry affect the accounting equation?

* On June 1, Polly signed a one-year, $17,100 note to First State Bank and received $15,390. How does this entry affect the accounting equation?

* Polly's sold 140 gift certificates for $30 each for cash. Sales of gift certificates are recorded as a liability. At year-end, 30% of the gift certificates had been redeemed. How does this entry affect the accounting equation?