6

Ouellette & Associates began operations on January 1, 2017. Its fiscal year end is December 31 and it prepares financial statements and adjusts its accounts annually. Selected transactions for 2017 follow:

1.On January 10, bought office supplies for $3,600 cash. A physical count at December 31, 2017, revealed $800 of supplies still on hand.

2.Paid cash for a $15,060, one-year insurance policy on February 1, 2017. The policy came into effect on this date.

3.On March 31, purchased equipment for $21,120 cash. The equipment has an estimated eight-year useful life.

4.Leased (rented) a truck on September 1 for a one-year period for $440 per month. Paid the full lease cost of $5,280 in cash.)

5.On October 15, received a $1,755 advance cash payment from a client for accounting services expected to be provided in the future. As at December 31, one third of these services had not been performed.

6.On November 1, rented out unneeded office space for a six-month period starting on this date, and received a $1,650 cheque for the first three months' rent.

Make journal entries to record transactions 1 to 6. All prepaid costs should be recorded in asset accounts. All revenue collected in advance of providing services should be recorded as liabilities