Required: For each of the pieces of additional information below,prepare in the space provided any adjusting journal entry necessary to bring the accounts up to date as at December 31, 2020, the fiscalyear-end of Day, Inc. Please use the letters a to f clearly label your journal entries. a.A one-year property insurance policy that was renewed and paid on October 1, 2020 for $36,000,and the entire payment was debited to Prepaid Insurance. No entry to the account has been madesince the renewal of the insurance policy (3 points). b. The building has an estimated useful life of 20 years. Day Inc. expects that the residual value of thebuilding at the end of its useful life will be $20,000. Depreciation Expense has not yet been recordedfor the current year (3 points). c. The Note Payable is for a loan of $200,000 negotiated with the Bank of Montreal in 2017.Day Inc.pays annual interest of 6% and interest is payable on February 1 and August 1 each year. No entryhas been made to adjust the balance of Interest Expense since August 1, 2020 (3 points). d.On December 31, 2020, Day Inc. discovered that the unadjusted balance of Sales Revenue included$86,000 of customer pre-payments for Merchandise Inventory to be shipped on January 13, 2021 (2points). e.In order to accommodate employees during its office building renovation, Day Inc. paid $16,000 torent a temporarily office location from October 1, 2020 till January 31, 2021. The entire payment of$16,000 was made on September 30, 2020 and debited to Rent Expense (3 points). f. Based on preliminary computations, the firm estimates that Income Tax Expense for the year willbe $128,000 (2 points).

The UNADJUSTED trial balance for Day, Inc., as at December 31, 2020, is presented below: Dr. Cr. Cash 187,300 Accounts receivable 168,000 Merchandise inventory 620,000 Supplies inventory 6,800 Prepaid insurance 36,000 Land 120,000 Building 280,000 Accumulated depreciation - building 80,000 Accounts payable 66,000 Note payable, due Dec. 31, 2022 200,000 Common shares 140,000 Retained earnings, January, 1, 2020 227,900 Sales revenue 1,122,000 Supplies expense 12,800 Salaries expense 355,000 Interest expense 7,000 27,000 Insurance expense Rent expense ! 16,000 1,859,900 1,859,900