Problem 2 (10 Points) Clermont Corporation (the Company) adjusts and closes its accounts at the end of the calendar year. The information presented below provides the basis for making the adjusting entries needed at December 31. -3 1. On July 1, the Company received $12,000 of rental revenue covering a one-year period beginning with the date of receipt. The Company credited rental revenue on July 1. 6 menms 12000 (6/12) (6000)) 2. A balance sheet account was debited on September 1, when the Company paid a $9,000 premium for a three-year insurance policy effective on that date. 9000/3 = 3000 3000-(4/12) 1000 Prepare all necessary adjusting entrie, loclade my calculations used in developing the 3. The Company borrowed $90,000 on March 1 by signing a three-year note payable bearing interest at 5%. The interest is payable quarterly. Interest payments were made and recorded properly on May 31, August 31 and November 30. 000 0.05 = 4500 (3/12) 1125 90,0 4500 2

caleodar yoar. The information prosented belou perides the basis for making toe adjastife eatries necdod a December 3 1. 6 menthis 12000(6/12)>6000 9000/3=3000 3000(1/12)/1000