Ch 5 CPA FIRM AJES A CPA Firm closes their books monthly. Record the company's AlEs to prepare for the 12/31/16 closing. 1. Prepaid Expense: On Dec 1, 2016 the company paid $6,000 for 6 months of rent in advance. Book the 12/31/16 adjustment for the amount of rent used. 2. Prepaid Expense: The balance in supplies inventory on 12/1/2016 was $4,000, and on 12/10/16 the company purchased $1,500 additional supplies. On 12/31/16 a physical count reveals $3,000 of supplies left. Record the AJE on 12/31/16 for supplies used. 3. Prepaid Expense: On 12/5/16 the company purchased a truck for $25,000. The estimated life of the truck is 5 years and its salvage value is $5,000. Record the straight-line depreciation at 12/31/16. 4. Prepaid Expense: The beginning balance in the Prepaid Insurance account on 12/1 is $1,200 for 3 months of insurance. Record the expired insurance on 12/31/16. 5. Accrued Expense: During the last three days of Dec two employees worked for $90 per day, but will not be paid until January 2017. Record the payroll accrual on 12/31/16. 6. Unearned Revenue: On 12/5/16 a customer stopped by to pay $1,100 for year-end accounting services in advance. The services were then completed on the last day of the month. Record the AJE on 12/31/16. 7. Accrued Revenue: The firm provides bookkeeping services on 12/31/16 worth $500 to a good customer whom has until January 31 to pay the amount due. Record the AJE on 12/31/16