By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $28,400 during the year and recorded those as Deferred Revenue. Record the adjusting entry.

Genereal Journal Entries:

1.

Record the issuance of the long-term note payable for the purchase of land on November 1, 2025.

2.

Record the first monthly payment on the long-term note payable, made on November 30, 2025.

3.

Record the second monthly payment on the long-term note payable, made on December 31, 2025.

4.

The 12 monthly payments in 2026 (following year) will reduce the note's balance by an additional $63,863. Record the reclassification of this amount from long-term notes payable to current notes payable.

5.

Record the entry to close the revenue accounts.

6.

Record the entry to close the expense accounts.