Unadjusted Trial Balance December 31, 2020 Credit Debit 18,412 62.500 645 61,743 8.280 70,000 475,000 Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Insurance Investment in AT&T Bonds Plant and Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Sales Retums and allowances Cost of Goods Sold Delivery Expense Salaries and Wages Expense Interest Expense Miscellaneous Expense Rent Expense Rent Revenue 142,800 13,950 130,000 50,000 191,290 781,200 4,390 537,500 25,360 92,950 6,600 1,950 21,600 76,400 1,386,285 1,386,285 Required: Consider the following and prepare any necessary entries at December 31, 2020. (Note-you can use accounts not shown in the above trial balance if necessary). 1. On January 10, after year-end, It was discovered that a customer came in on December 31, 2020 and made a payment on their account of $3,200. The check was placed in a desk drawer and has not been recorded on the books 2. Forevera paid a 12-month insurance premium on April 1 and recorded the premium paid in prepaid insurance. This is the only transaction posted to prepaid insurance during the year. 3. The company has extra space in their office building which they lease to others. The following items are included in Rent Revenue: Lease I-Remaining portion of a 15-month lease agreement signed on December 1, 2018. This was a time Forevera Company needed additional cash so they agreed to lease out some space for $1,600 per month (a bargain) if the tenant paid the full 15-month lease in advance. The tenant paid the full amount on December 1, 2017. Appropriate adjusting entries had been made at the end of 2018 and 2019. Lease 2-A one-year lease was paid in full by the tenant on March 1, 2020. The amount collected on March I was $46,200. Lease 3-A six month lease was signed on October 31, 2020. Forevera Company collected $27,000 at the time the lease was signed. 4. The company estimates their bad debts to be 3 percent of their ending accounts receivable balance 5. The company depreciate their plant and equipment owned all year at 8% per year. Acquisitions and dispositions are depreciated at half this rate. On January 1, 2020 the balance of plant and equipment was $419,000. No plant and equipment was disposed of during 2020 6. On September 30, Forevera Company purchased 70, 51,000 par value AT&T bonds at par. The bonds have a stated interest rate of 6% per year and pay interest every May 31 and November 30. 7. Forevera Company rents warehouse space to store excess inventory. The company signed an ten month lease on August and paid all ten months (521,600) on that date. The payment was debited to rent expense and credited to cash on Augusti 8. Forevera borrowed money by issuing 130 $1,000 par value 20-year bonds payable on July 1, 2019 at par. The bonds have an annual interest rate of 5.25% and pay interest on June 30 and December 3 to the bondholders 9. A physical count of the inventory at year end shows that inventory costing $60,243 is on hand at December 31 10. Prepare closing entries for Forevera Company