Crane 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. On January 2, purchased supplies for $3,970 cash. A physical count at December 31 revealed that $660 of supplies were still on hand. Purchased a vehicle for $40,800 on April 1, paying $5,000 cash and signing a $35,800 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%. Purchased a $3,600, one-year insurance policy for cash on August 1. The policy came into effect on that date. Received a $1,500 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 $1,260 each month. It paid rent for the months of December and January in advance on this date. 3. 4. 5. (Record entry for depreciation expenses.) Dec. 31 Interest Expense 214.8 Interest Payable 214.8