create the following entries, adjusting entries, and closing entries.

Part A - For each of the following items, prepare the appropriate adjusting entry which should be made on December 31, 2021. 1. You purchased a patent for $86,000 on July 1, 2021. On December 31, 2021, record the amortization assuming the patent has a 20-year legal life but you think the product for which you filed the patent will be obsolete in 8 years. Your company uses the straight- line method of amortization. 2. You borrowed $200,000 on May 1, 2020, and signed a 3-year, 9% note at the bank. Interest on this loan will be paid annually on April 30 each year. Accrue the interest on December 31. 3. You rented an extra office to a friend who paid you $1,000 in November, 2021. Your friend has not paid the $1,000 for December. Accrue the rent on December 31. 4. On September 1, 2021, your company paid $12,000 in cash for 6 months of insurance on your building. Prepare the entry on September 1, 2021, and the adjusting entry on December 31, 2021. 5. Your company sold products for $750,000 on account throughout the year. On December 15, 2021, one customer returned $10,000 of products which cost you $3,000, and you refunded their money. On December 31, you estimated bad debts to be 1% of NET sales. Prepare the entry on December 15, 2021, and the adjusting entry on December 31, 2021 Part B - Based upon the amounts and accounts in computer problem #1. prepare the appropriate closing entries which your company should have made on December 31, 2020