How are they different? (20)Q.5 Davis Company opened a Web page design business on January 1 of the currentyear. The following information relates to Davis Company's operations during thecurrent years(20)1: On February 1. Davis Company rented a new office. Before moving in, it prepaid ayear's rent of Rs. 24,000 cash.2.On March 31. Davis Company borrowed Rs. 50,000 from a local bank at 15%. Theloan is to be repaid, with interest, after one year. As of December 31, no interestpayments had yet been made,3. Davis Company bills some of its customers in advance for its design services.During the year, Davis received Rs. 60,000 cash in advance from its customers. Asof December 31. Davis's accountant determined that 40% of that amount had notver been eacued.On June 15, Davis Company purchased Rs. 1,400 of supplies for cash. OnSeptember 14, Davis made another cash purchase of Rs. 1,100. As of December31, Davis's accountant determined that Rs. 1,700 of supplies had been used duringtheyear.5. Before closing its books, Davis Company found a bill for Rs. 800 from a freelanceprogrammer who had done work for the company in November. Davis had not yetrecorded anything in its books with respect to this bill. Davis plans to pay the bill inJanuary of next year.For each of the items, make the initial entry, where appropriate, to record thetransaction and, if necessary, the adjusting entry at December 31.3​