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.