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. On January 2, purchased supplies for $4,260 cash. A physical count at December 31 revealed that $670 of supplies were still on hand. 2. 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 interestof 3%. 3. Purchased a $3,540, one-year insurance policy for cash on August 1. The policy came into effect on that date. 4. 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. 5. 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. (a) Your answer is correct. For each of the above situations, prepare the journal entry for the original transaction. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Supplies Cash Vehicles Bank Loan Payable Cash Prepaid Insurance Cash Jan. 2 Apr. 1 V Aug. 1 v Nov. 9 V Dec. 1 Cash Deferred Revenue Prepaid Rent Cash 4260 44800 3540 1490 2160 4260 40800 4000 3540 1490 2160 (b) - Your answer is partially correct. For each of the above situations, prepare any adjusting entry required at December 31. (Record journal entries in the order presented in the problem. List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round all amounts to the nearest dollar.) Date Account Titles and Explanation Debit Credit Dec. 31 Supplies Expense 3590 Supplies Dec. Depreciation Expense 6720 31 Accumulated Depreciation - Vehicles 35840 (Record entry for depreciation expenses.) Interest Expense 10200 Interest Payable (Cash paid for interest expense.) Insurance Expense 1475 Prepaid Insurance Deferred Revenue 745 Service Revenue 1080 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Rent Expense Prepaid Rent 3590 6720 10200 1475 745 1080