Prepare adjusting entries If the original entries were recorded to a temporary and permanent account.

1. The company paid $18,000 for a one year lease that commenced on 9/1/20. 2. The company received $25,000 in advance for services to be rendered in the future. As of 12/31/20 the company had earned $15,000. 3. The company paid $9,000 for a 1 year fire policy with an effective date of April 1, 2020. 4. During the year the company purchased $1,400 in supplies of which $400 remain on hand 12/31/20. 5. Buildings has a $70,000 salvage value and a 20 year life. 6. Equipment has a $30,000 salvage value and a 10 year life. 7. The company received a $40,000, 6%, 6 month note from a customer on 11/1/20. 1.) Record the adjusting entry for 12/31/20. 2.) Record the receipt of payment 4/30/21 with and without reversing entries