B) Adjusting entries. (15 points) By the end of December 2020, Peter Ustinov, chief accountant of Pearl associates is working to finish his accounting for the month. He realizes that he still needs to prepare the adjusting entries, and he has the following information:

1. Salaries earned by employees that have not yet been recorded or paid amount to 5,600.

2. Depreciation of the IT equipment is based on an estimated life of 4 years.

The straight-line method is used.

Depreciation of the Furniture is based on an estimated life of 5 years.

The straight-line method is used. IT equipment was acquired on December 31st last year for a price of 2,500,000.

Furniture was acquired on June 30th, 2020 for a value of 350,000.

3. The company signed an insurance contract by February 28st 2020 for one year, with a value of 45,000.

4. A 12-month bank loan in the amount of 100,000 had been obtained with an interest computed at an annual rate of 5 percent on July 31st, 2020. The entire 100,000, plus all of the interest accrued over the 12-month life of the loan, is due in full on July 31st of the upcoming year.

5. Unrecorded Income Taxes Expense accrued in December amounts to 9,600. This amount will not be paid until March 15.