4. rug rent on January 1 for the three-month period January-March. 5. Recorded depreciation on equipment it owned. 6. Paid salaries to its employees. 7. Made a year-end accrual for interest owed the bank on money it had borrowed. E15-35. (Using debits and credits) LO 3 Ken Cascioli and Bill Ryder, master painters and paperhangers, formed a partnership. They had the following transactions during their first month of business. Record the debits and credits, without mak- ing explanations. 1. Ken and Bill each invested $3,000 in the business. (Note: Use separate capital accounts for each.) 2. Ken and Bill acquired the following items of equipment for use in the business: a. Ladders and other equipment, for which they paid $1,800 in cash. They estimated that the equipment would have an average useful life of 6 years. b. A pickup truck, which they bought for $10,000. They paid $2,000 in cash as a down pay- ment and signed a note for the remainder, agreeing to pay $1,000 a month for the next eight months, together with interest at the rate of 5 percent per annum on the unpaid balance of the loan. They estimated the truck would have a useful life of four years. 3. They took out a three-year insurance policy related to their business activities, paying $1,200 cash. 4. They paid $380 for paint and other supplies, all of which was consumed on the various painting jobs they did during the month. 5. They paid $80 for gasoline for the pickup truck 6. Ken and Bill expect payment from their customers every Friday for work done during the week. During the month they collected $9,380 in cash for their work. E15-36. (Using debits and credits for adjusting journal entries) LO 4 Ken Cascioli and Bill Ryder (see Exercise E15-35) need to make adjusting journal entries to prepare financial statements based on their first month's activities. Make adjusting joumal entries for the fol- lowing events, referring to the transactions in Exercise E15-35 as necessary. 1. Rennt den riation for one month on the web lates provided