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Below are selected account balances from the July 31, 2020 of the Hall corporation. The inventory on hand at july 31, 2020 is $ 25,000. Inventory, Jan 1,2020 $ 15,000 Supplies 5,000 Purchases 54,000 Prepaid insurance 12,000 Equipment 80,000 Allowance for doubtful accounts 1,500 Notes receivable 30,000 Sales Rent revenue $ 101,000 20,000 80,000 115,000 Notes payable Retained earnings Dividends declared 5,000 25,000 Salaries expense Additional information: a. Supplies of $3,000 were on hand on July 31, 2020. b. On May 1, 2020, $ 20,000 was collected as rent and a nominal account was credited. c. On Feb 1, 2020, $ 12,000 was paid covering 24-months of insurance premium, and an asset account was charged. d. On February 1, 2020, Hall corporation purchased equipment and gave a 12- month. 9% note with a face value of $ 80,000. Depreciation on the equipment is computed on a straight line basis with a 10-year useful life, and no salvage value. e. Employees are paid on every Friday. The accounting period ends on Wednesday. salaries are paid at $ 4,000 per week. f. On April 304, a $ 30,000, 6-month, 6% note was received from a customer for services performed. g. Income tax rate is 25%. Requirements: 1. Prepare applicable journal entries 2. Prepare adjusting entries. 3.Prepare closing entries

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