Ella Co is a gym which was incorporated on January 2, 2020. The following transactions happened during the year ended December 31, 2020 1 On January 2nd, the owner invested $250,000 to start the gym On January 2nd. Ella signed a two-year lease contract to rent a building which will be used as the main facility. The first month rent of $1,000 was paid in advance on Jan On February 28, Ella borrowed $120,000 from a local bank. The loas is a 3-year with 5% interest rate. The interest is payable on the first day of each month, beginning April 1st 4 On March 1, Ella purchased equipment at a cost of $55,000 on account. The equipment has a useful Me of 10 years and $1,000 residual value 5 On March 31, Ella collected $70.000 membership fees from its customers. The membership fees cover a full year 6 The following expenses were paid during the year Salaries and wages expense Rent expente Interest expense 78.000 11,000 4,500 O 1 2 24 7 On May 1. Ella purchased a two-year insurance policy at a cost of $3,600 which takes effect on May 1 8 On September 1st, Ella invested in 10,000 common shares of Ava Inc. The shares are classified as FVTOCl investments. The common shares of Ava were traded at $9 per share on September 1, 2020. The shares are traded at $15 per share on December 312020 5 Required: 26 Prepare journal entries to record the above transactions. For each entry, write the initial entry and then, if necessary, vsite an adjusting entry at December 31, 2020 27