On October 1, 2017, Aster Turane organized a computer service company called Aster

Systems. Aster is organized as a sole proprietorship and will provide consulting services, computer

system installations, and custom program development. Aster Systems has adopted the calendar year

for reporting, and expects to prepare the company's first set of financial statements as of

Oct. 31, 2017. The initial chart of accounts for the accounting system includes these items:

Account Number

Account Name

Account Number

Account Name

101 Cash 302 Aster Turane, Withdrawals

106 Accounts Receivable 403 Computer Services Revenue

126 Computer Supplies 623 Wages Expense

128 Prepaid Insurance 625 Rent Expense

131 Prepaid Rent 626 Insurance Expense

163 Office Equipment 655 Advertising Expense

167 Computer Equipment 676 Mileage Expense

170 Accumulated Depreciation 684 Repairs Expense, Computer

201 Accounts Payable 698 Depreciation Expense

301 Aster Turane, Capital 699 Charitable Donations Expense

Required Please anwser all MCQ based on the following business transactions.

Please do all adjustment entries before you anwer your MCQ questions.

The expected useful life of computer system and office equipment are 3 years.

There is no residual value for all equipments

Please use the straight-line method for the depreciation.

Oct. 1 Aster Turane invested $42,000 cash, a $14,400 computer system, and

$3,600 of office equipment in the business.

2 Paid six months of rent in advance; $12,000.

3 Purchased computer supplies on credit for $1,975 from Triple-One Supplies.

5 Paid $8,640 cash for one year's premium on a property and liability insurance

policy.

6 Billed Norton Electric $6,300 for installing a new computer system.

8 Paid for the computer supplies purchased from Triple-One Supplies.

10 Hired Donald Gee as a part-time assistant for $345 per day, as needed.

12 Billed Norton Electric another $1,850 for computer services rendered.

15 Received $1,650 from Norton Electric on its account.

17 Paid $375 to repair equipment damaged when moving into the

new office.

20 Paid $1,950 for an advertisement in the local newspaper.

22 Received the balance owing from Norton Electric on its account.

28 Billed Whistler Resort $9,400 for services.

31 Paid Donald Gee for nine days' work.

31 Aster Turane withdrew $1,200 cash from the business for personal use.

What is the balance of the prepaid rent account at the month end?

12000

12000

10000

10000

24000

24000

8000

8000

What is the balance of the total assets at the month end?

64700

64700

65700

65700

68700

68700

67700

What is the balance of the computer supplies account at the month end?

1875

1875

1775

1775

1975

1975

1675

What is the balance of the accounts receivable at the month end?

7400

7400

6400

6400

9400

9400

8400

How much is the computer service revenue is this month?

13550

13550

14550

14550

12550

12550

17550

How much is the net income is this month?

8900

8900

8400

8400

8800

8800

8650

How much is the total expense is this month?

8750

8750

8720

8720

8650

8650

7950

What is the balance of the prepaid insurance account at the month end?

7600

7600

7640

7640

7920

7920

8640

What is the net value of the office equimpent account at the month end?

3400

3400

3600

3600

3300

3300

What is the balance of total current assets at the month end?

60200

60200

58200

58200

48900

48900

50200