Exercises 1 Dr. Erica Chan, MD owns EC Health Clinic. She prepares annual financial statements and has a December 31, 2020 yearend. a. On October 1. 2020. Dr. Chan prepaid \$8.000 for four months of rent. b. On November 1, 2020. Dr. Chan prepaid $480 to renew the clinic's magazine subscriptions. The subseription is for one year. c. On December 1, 2020. Dr. Chan pays $3,000 for supplies. At the end of the year. $2,000 of supplies had not been used. Required For each transaction, record the initial journal entry and the adiustine entry required on December 31, 2020. Exercise 2 Splish Splash Art is a centre that offers children's music and dance lessons. Splish Splash perepares annual financial statements and has a December 31, 2020, yearend. 2. On September 1, Splish Spash Art collects $15,000 cash for dance lessons running from September 1, 2020 to December 31, 2020. b. On October I, Splish Splash Art collects S5,000 cash in aduance from the Music Box Inc. (\$2.,500 per month) to rent its performance stage for the full month of December 2020 and January 2021. c. On October 1, 2020, Splish Splash Ast collects S5,, 000 cash for four months of music lessons for a local private school. The lessons run from 0ctobet 1, 2020 to January 31, 2021. Yara Clothing (Yara), a retail store at the mall, hires a number of employees to work 7 days a week. Yan owes its employees wages for the period of December 27, 2020 to lanuary 9, 2021 (14 days) for $5,600. The wages owed are equal each day and the employees will be poid on January 11, 2021. Yara prepares annual financial statements and has a December 31 year-end. a. How much does Yara owe its employes per day? b. How many days are between December 27,2020 and December 31, 20207 Exercise 4 On January 1, 2080. Taco Taqueria, a Mexican recturant, purchused equipmert for 512000 cast. Taso Taqueria etimates that the peepures finuncial talements on an antual bess and has a Decentice 3 jil yeavend a. Recond the journal entry on lanuary 1, 2000 b. What is the formula to calculate straight-liae depreciation? 4. In order to prepure the annual financial statements, reourd the adjosting jornal ettry fir depeccition on Decenter. 31 . 2090