The information necessary for preparing the 2021 year-end adjusting entries for Bearcat
Personal Training Academy appears below. Bearcat’s fiscal year-end is December 31.
1. Depreciation on the equipment for the year is $7,000.
2. Salaries earned (but not paid) from December 16 through December 31, 2021, are $4,000.
3. On March 1, 2021, Bearcat lends an employee $20,000. The employee signs a note requiring principal and interest at 9% to be paid on February 28, 2022.
4. On April 1, 2021, Bearcat pays an insurance company $13,200 for a two-year fire insurance policy. The entire $13,200 is debited to Prepaid Insurance at the time of the purchase.
5. Bearcat uses $1,700 of supplies in 2021.
6. A customer pays Bearcat $2,700 on October 31, 2021, for three months of personal training to begin November 1, 2021. Bearcat credits Deferred Revenue at the time of cash receipt.

7. On December 1, 2021, Bearcat pays $6,000 rent to the owner of the building. The payment represents rent for December 2021 through February 2022, at $2,000 per month. Prepaid Rent is debited at the time of the payment.

Required:
Record the necessary adjusting entries at December 31, 2021. No prior adjustments have been made during 2021.