The trial balance of INFINITY Company is reproduced below. The information following it on the next page is relevant to the preparation of adjusting entries needed to both properly match revenues and expenses for the period.

INFINITY Company
Trial Balance
31-Dec-20
Cash	5,400
Marketable Securities	4,050
Accounts Receivable	40,000
Allowance for Doubtful Accounts		420
Notes Receivable	2,000
Prepaid Rent Expense	12,000
Merchandise Inventory	16,800
Supplies	2,500
Equipment	49,000
Accum. Depr.Equip.		9,800
Accounts Payable		4,400
Notes Payable		4,250
Common Shares		40,000
Retained Earnings		32,940
Sales		329,100
Rental Income		3,750
Cost of Goods Sold	238,110
Office Salaries	20,800
Sales Commissions	29,000
Rent Expense	5,000
Total	424,660	424,660

Instructions

As the accountant for INFINITY Company, you are required to prepare adjusting entries based on the trial balance above . Ignore income taxes and create new accounts, if necessary. Round all calculations to the nearest dollar

1. A physical inventory of supplies indicated $1,025 of supplies were used.

2. The rental income indicated on the trial balance (previous page) was received on December 1. The leasee paid all of their rent for three months (Dec., Jan., Feb.), at $1,250 per month.

3. The equipment is being depreciated on a straight-line basis over 10 years.

4. The 90 day note receivable was issued on November 1, 2017, bearing 7% annual interest