The period under consideration is July 1, 2020 - June 30,2021

Please record these adjusting entries and provide calculations.

This chart of accounts must be used. Cant add any new accounts

July 1. 2020. Liz Burnes and her brother, James each invested $15,000 in a corporation they formed

to run Diner 64, Inc. Each were issued 1,500 shares of $10 par value common stock.

July 1, 2020 The corporation took a $30,000 small business loan from a local bank. The loan is an

'interest only' loan for three years at a fixed rate of 12% per year. A balloon payment of the principal will be due in 3 years. The monthly interest payment is due by the 10th of the following month.

July 1,2020. Because this was a new business, the landlord required the business to prepay

$6,000 for the rent for the first six month, plus a $1,500 security deposit for a total cash outlay

of $7.500.

July 1, 2020 The business purchased equipment and fixtures for $20,000 in cash.

The assets have a useful life of 10 years.

July 1, 2020 The company purchased delivery van value at $40,000 with a $15,000 down payment and a 3-year, $25,000 note payable with an annual intereste rate of 6%. The truck has a 10-year useful life. The monthly payment including principal and interest is $760.55.

July 8, 2020 Preston Hill, a local Bed & Breakfast (B & B), arranges with Diner 64 to provide breakfast for their guests at $10 per person per day. Diner 64 will bill the B & B at the end of each month for the meals provided. Payment is required by the 10th of the next month

July 15,2020 Paid $4 800 for two-year fire and liability insurance with coverage beginning September 1. 2020

Number Account 100 110 115 125 130 135 140 150 155 160 Assets Cash Accounts receivable Food Inventory Supplies Prepaid rent Prepaid insurance Delivery Van Equipment and Fixtures Accumulated depreciation Security deposit 210 220 230 240 Liabilities Accounts payable Notes payable Gift Certificates Interest payable Stockholders' Equity Common stock Retained earnings 300 310 400 Revenue Sales revenue 500 600 610 620 630 640 650 660 665 670 675 680 685 690 695 700 750 Expenses Cost of Goods Sold Advertising expense Salaries expense Supplies expense Rent expense Depreciation expense Interest expense Insurance expense Gasoline Telephone expense Printing expense Repair expense Utilities expense Uniform expense Cleaning & maintenance expense Dividends Income summary