Boot Camp Co. (BCC) is about to close its December 31, 2020 financial year-end. Following are the preliminary amounts or situations in the accounts described.

Required:

For each situation, provide the adjusting entry(ies) required, if any, to properly record the events and reflect the correct accounts. (Round to the nearest dollar.)

1. BCC received an advance payment on December 31, 2020 of $25,000 on a custom order and the accountant credited the deferred (unearned) contract revenues account upon receipt of the payment.
2. BCC purchased office furniture on July 1, 2020 for $46,000. The depreciation policy for these assets is on a straight-line basis over 5 years. The only entry recorded was the following:

Dr. Office equipment expense 46,000

Cr. Accounts payable 46,000