Prepare any necessary journal entries for 2020, including adjusting entries.

1. On 1/1/20 Acme Bakery purchased equipment for $50,000 cash. They estimated that they would be able to use the equipment for 5 years.
2. On 1/1/20, Acme Bakery entered into a 2-year rental agreement. They paid $24,000 on 1/1/20 for the 2-year lease.
3. Acme borrowed $100,000 from a bank on 9/1/20 at an 8% interest rate. The loan plus interest is to be repaid on 9/1/21.
4. Acmes employees earned $1,000 as of 12/31/20 which will be paid to them on 1/5/21.
5. Acme determined that its bad debt expense associated with its accounts receivable is $2,500.