2.-Prepare Taccounts with the initial information and make the adjustments related to the adjusting entries. Show the balance for each Taccount. !!!

DIR Fit Co. is a fitness club. All members pay in advance to be admitted to the club premises. Advance payments are credited to an account entitled Unearned Revenue. Adjusting entries are performed on a monthly basis. An unadjusted trial balance dated December 31,2020 , follows. (Bear in mind that adjusting entries have already been made for the first 11 months of 2020, but not for December.)

Other Data:

1. Records show that 26,200of cash receipts originally recorded as unearned revenue had been earned as of December 31,2020 .

2. The company purchased a six-month insurance policy on September 1, 2020, for 24.000.

3. On November 1, 2020, the company paid 30.000for rent through January 31, 2021.

4. Supplies on hand at December 31 amount to 500.

5. All equipment was purchased when the business first formed. The estimated life of the equipment at that time was three years (or 36 months).

6. On April 1, 2020, the company borrowed 100,000by signing a 12-month, 10 percent note payable. The entire note, plus 12 months' accrued interest, is due on March 1, 2021.

7. Accrued but unrecorded salaries at December 31 amount to 10,000

. 8. Estimated income taxes expense for the entire year totals 25,000. Taxes are due in the first quarter of year 2021.

9. At December 31st. . DIR has signed an agreement with Futbol Club Barcelona that states that all Futbol Club Barcelona members will be given access to the Gym for an annual fee of 60.000.