0. By the end of December 2021, Renato Donnatello, chief accountant of Milano 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 12,800.

   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 8 years. The straight-line method is used. IT equipment was acquired in December last year for a price of 3,600,000. Furniture was acquired by the end of June 2021 for a value of 640,000.

   3. The company signed an insurance contract by February 28th, 2021, for one year, with a value of 9,600.

   4. A 60-month bank loan in the amount of 2,400,000 had been obtained with an interest computed at an annual rate of 6 percent on July 31st 2020. The

      interest is payable from the first month onwards, the principal at the loans maturity date.

   5. 35% of several customers pre-paid services have been delivered last month. The pre-paid balance was amounting to 420,000. Total contract value was

      700,000

   6. Unrecorded Income Taxes Expense accrued in December amounts to 21,800. This amount will not be paid until March 30.