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. For the following events which occurred in 2021, please show how (positive or negative and how much with the description of the event) and where they will be reported on the skeleton outline of the cash flow statement at the bottom of this page: 1. Sold land for $120,000 in cash. The land cost $140,000. 2. Accounts Receivable decreased by $35,000 during the year 3. Purchased stock in another company for $50,000 in cash and plan to keep the shares more than one year 4. Sold 4,000 shares of our own $10 par common stock for $32 per share in cash. 5. Loaned $200,000 in cash to another company 6. Paid S27,000 of Cash Dividends 7. Purchased equipment for $30,000 and issued a 5-year, 8% note as payment. Homework Company Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flow from Operating Activities Net Income Non-Cash Expenses Changes in Current Accounts Gains or Losses Net Cash Flow from Operating Activities Cash Flow from Investing Activities Inflows Outflows Net Cash Flow from Investing Activities Cash Flow from Financing Activities Inflows Outflows Net Cash Flow from Financing Activities Total Cash Flow Beginning Cash Balance Ending Cash Balance Other Investing and Financing Transactions not Affecting Cash 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. For the following events which occurred in 2021, please show how (positive or negative and how much with the description of the event) and where they will be reported on the skeleton outline of the cash flow statement at the bottom of this page: 1. Sold land for $120,000 in cash. The land cost $140,000. 2. Accounts Receivable decreased by $35,000 during the year 3. Purchased stock in another company for $50,000 in cash and plan to keep the shares more than one year 4. Sold 4,000 shares of our own $10 par common stock for $32 per share in cash. 5. Loaned $200,000 in cash to another company 6. Paid S27,000 of Cash Dividends 7. Purchased equipment for $30,000 and issued a 5-year, 8% note as payment. Homework Company Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flow from Operating Activities Net Income Non-Cash Expenses Changes in Current Accounts Gains or Losses Net Cash Flow from Operating Activities Cash Flow from Investing Activities Inflows Outflows Net Cash Flow from Investing Activities Cash Flow from Financing Activities Inflows Outflows Net Cash Flow from Financing Activities Total Cash Flow Beginning Cash Balance Ending Cash Balance Other Investing and Financing Transactions not Affecting Cash