The period under considerstion is July 1st ,2020 - June 30, 2021.

Please record these adjusting journal entries and show calculations please.

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 1,2021, 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 15,2020, Paid $4 800 for two-year fire and liability insurance with coverage beginning September 1. 2020