Conan Company has the following information concerning adjusting entries. .Conan Company owns a building. They rent part of it out to another company. On 9/1/12, they received $6,600 in advance for six month's rent, covering the period 9/1/12-2/28/13. Prepare the 12/31/12 adjusting entry Conan's employees are paid $20,000 each Friday for a five-day week. Assume December 31 falls on a Tuesday in 2012 (therefore, the last paycheck the employees received covered the period 12/23-27). Prepare the 12/31/12 adjusting entry and the entry for the first payday in 2013 On 10/1/12, Conan lent $30,000 to another company. The other company signed a nine-month, 12% note that is dated 10/1/12 and matures with interest on 6/30/13. Prepare the 12/31/12 adjusting entry and the entry when Conan collects the principal and total interest on 6/30/13. On 8/1/12, Conan paid $8,400 in advance to a custodial service company. The other company will provide seven months of custodial services to Conan beginning 8/1/12. Prepare the 12/31/12 adjusting entry Step 1 Student 1: Prepare the entries for Items 1 and 2. Student 2: Prepare the entries for Items 3 and 4 Post your answer in the appropriate Discussions area Step 2 Student 2: Check your teammate's entries from Part 1. If you think his/her work is incorrect, correct it. Then indicate what effect each of the correct entries has on Conan's assets, liabilities, stockholders' equity, and net income. Student 1: Check your teammate's entries from Part 1. If you think his/her work is incorrect, correct it. Then indicate what effect each of the correct entries has on Conan's assets, liabilities, stockholders' equity, and net income. Step 3 Stude 1 and Student 2: Look over all of the entries and answers from the first two steps and come to an agreement on the correct answers. Step 4 Student 1: What is the purpose of adjusting entries (in other words, why must they be prepared at the end of each period)? Student 2: Read and comment on your teammate's answer (why you agree or disagree)