Question 2 Amazing Consulting Company (ACC) maintains its records cash basis of accounting during the year and then converts them to accrual basis at the end of the year through adjusting entries. While preparing the financial statements of ACC for the year ended December 31, 2020 on accrual basis, you discover the following: a. An insurance policy covering four years was purchased on March 1, 2020, for 13,200. The entire amount was debited to insurance expense and no adjusting entry was recorded for this item b. During November 2020, the company received a $5,400 cash advance from a customer for services to be rendered in 2021. The $5,400 advance was credited to service revenue. C. ACC borrowed $45,000 from XYZ Company on August 1, 2020. Principal and interest at 6% will be paid on July 31, 2021. No accrual was recorded for the interest. d. The cash basis net income reported for 2020 is $105,000. This net income does not reflect the adjusting entries related to any of the above items. Required i. Prepare the adjusting entries (if any) related to parts a to c. (4.5 points) ii. Determine the accrual basis net income for 2020. (2 points)