? PART 2: 2. The Temprano Co. had the following Balance Sheet account balances at its 2019 and 2020 fiscal year ends (all accounts have normal balances): 12/31/2019 12/31/2020 Cash 270,000 1,765,000 Interest Receivable 36,000 ? Inventory 140,000 Prepaid Rent 16,000 Notes Receivable 600,000 600,000 Equipment 750,000 750,000 Accumulated Depreciation 375,000 ? Accounts Payable 45,000 -0- Deferred Revenue -0- ? Interest Payable -0- Notes Payable -0- 1,500,000 Retained Earnings 1,392,000 During 2020, Temprano had the following transactions and additional information: Temprano's rent contracts expire at the end of February. On March 1, 2020, Temprano paid cash of $114,000 for a 1 year rent contract that begins on 3/1/20. On 3/22/2020, Temprano purchased $1,200,000 of inventory from suppliers on account. Temprano has a perpetual inventory system and accounts payable relates to amounts owed to suppliers of inventory. On 4/10/2020, Temprano received $900,000 cash from a customer on a merchandise order with a sales price of $900,000. The merchandise will be delivered to the customer on 1/25/2021. On 5/1/2020, Temprano received a $54,000 cash interest payment from a customer. The $600,000 loan to the customer is a 4 year loan that was signed on 5/1/2019. The note requires the customer to make annual interest payments each 5/1 at 9%. On 10/1/2020, Temprano borrowed $1,500,000 from a bank by signing a 9 month note requiring repayment on 7/1/2021. Principal and interest at 8% are due on 7/1/2021. On 11/5/2020, Temprano made a sale to a customer. The customer paid the full sales price of $650,000 on the sale date and Temprano delivered the merchandise to the customer on the sale date. Temprano's cost on the merchandise sold was $280,000. On 12/1/2020, Temprano paid the balance due to suppliers of inventory in full. There is no remaining amounts owed to suppliers of inventory after the 12/1/20 payment is made by Temprano. On 12/30/2020, Temprano paid $250,000 of operating expenses that had been incurred in 2020. Temprano performs all adjusting journal entries at its 12/31 fiscal year end. Temprano uses straight-line depreciation on the equipment. Temprano estimates a 10 year useful life for the Equipment with no estimated residual value. As of 12/31/2020, the Equipment has been in use for 6 years. 2 2b. Provide all of Temprano's adjusting journal entries at 12/31/2020. 2c Provide all of Temprano's closing journal entries at 12/31/2020. Use an income summary account. 4