3 Question 3 (25 marks) REQUIRED: For each of the following separate transactions, prepare the necessary adjusting journal entries for XYZ Company, whose year end is December 31, 2017. Please include a date for each entry. Explanations are not required. 1. An automobile costing $61,000 was purchased on October 31 of the current year. It will be used for five years (60 months) and is estimated to have a salvage value of $1,000 at the end of the five years. Record depreciation for 2017. Depreciation is recorded to the nearest month in the year a capital asset is purchased. 2. In November 2017, XYZ Company signed a contact with White Company. XYZ Company is to provide consulting services for a fee of $1,000 per month. The services will be provided starting in January 2018. A deposit of $2,000 was received by XYZ Company in December 2017 and credited to earned revenue. 3. At January 1, 2017 the balance in the office supplies account was $1,000. During the year, $2,000 of supplies were purchased and debited to the office supplies expense account. At December 31, the supplies were counted and it was found that there were $800 of supplies remaining on hand. 4. The December telephone bill of $150 is unpaid and unrecorded. The telephone expense has a debit balance of $850 before any adjustments. 5. The unadjusted rent expense account at December 31, 2017 has a debit balance of $26,000. The monthly rent is $2,000 per month. The rent for January 2018 is has been paid in advance.