Bonita Corporation began operations on January 2. Its year end is December 31, and it adjusts its accounts annually. Selected transactions for the current year follow: 1. 2. 3. 4. 5. On January 2, purchased supplies for $4,260 cash. A physical count at December 31 revealed that $670 of supplies were still on hand. Purchased a vehicle for $44,800 on April 1, paying $4,000 cash and signing a $40,800 bank loan for the balance. The vehicle is estimated to have a useful life of 5 years and the company uses straight-line depreciation. The bank loan has an interest of 3%, payable at maturity. Purchased a $3,540, one-year insurance policy for cash on August 1. The policy came into effect on that date. Received a $1,490 advance cash payment from a client on November 9 for services to be performed in the future. As at December 31, half of these services had been completed. On December 1, the company rented additional office space for a six-month period starting on December 1 for $1,080 each month. It paid rent for the months of December and January in advance on this date.