Heading 2 Paragraph H Question #1 (40 marks) Styles Company A's business involves hosting several concerts per year. The company's year end is December 31, 2021. The company records all prepaid costs as assets and all un earned revenues as liabilities and adjusts accounts annually. 1. Prepaid supplies amounted to $835 on December 31, 2020. On June 10, 2021, additional supplies were purchased for S1,890 cash. On December 31, 2021, a physical count showed that prepaid supplies amounted to $940. 2. Purchased equipment on August 1, 2021, for $50,400 cash. The equipment was estimated to have a seful life of 12 year. The company's policy is to employ the straight-line method and depreciation is rounded to the nearest month 3. The company puts on eight concerts each season. Season tickets sell for 5430 each and 225 sold in July for the upcominz 2001- 2022 season, which begins in September 2021 and ends in April 2022 (one concert per month) The company credited Uneamed Revenue for the full amount received, 4. Every Wednesday, the total payroll is $5,520 for salaries earned during the previous workweek (Monday-Friday). Salaries were last paid on Wednesday, December 29. This year, December 31 falls on a Friday. 5. The company also rents the space to a local children's choir, which uses the space for rehearsals twice a week at a rate of 5740 per month. The choir was short of cash at the beginning of December and sent the company a cheque for $340 ce December 10, and 1 promise to pay the balance in January. On January 10, 2022, the company received a cheque for the balance away from December. At this time, the January rent was also paid. 6. On June 1, 2021, the company borrowed $24,000 from its bank at an annual interest rate of 5.0%. The principal and interest are to be repaid on May 30, 2022. 7. Upon reviewing its accounting records on December 31, 2021, the company noted that the telephone bill for theme of December had not yet been received A call to the phone company determined that the December telephone bill was $530 The bid was paid on January 12, 2021 a) Prepare the journal entries to record the 2021 transactions for itens 1 through 6. b) Prepare the year end adjusting entry for items 1 through 7. W