Tate Company purchased equipment on November 1, 2020 and gave a 13-month, 4% note with a face value of $45,035. Interest and principle are paid back when the entire loan is due. What is the amount of the adjustment to liabilities on December 31, 2020?

Round your answer to the nearest whole dollar. Don't use dollar signs when entering your answer.

2. Christmas Tree Corporation had revenues of $56,847, expenses of $23,371, and dividends of $3,401. Ending Retained Earnings is $206,410. What is beginning retained earnings?

Round your answer to the nearest whole dollar. Don't use dollar signs when entering your answer.

please show work and explain thank you