Ouellette & Associates began operations on January 1, 2017. Its fiscal year end is December 31 and it prepares financial statements and adjusts its accounts annually. Selected transactions for 2017 follow: 1 On January 10, bought office supplies for $3,200 cash. A physical count at December 31, 2021, revealed $800 of supplies still on hand. 2. Paid cash for a $7,740, one-year insurance policy on February 1. The policy came into effect on this date. 3. On March 31, purchased equipment for $20,928 cash. The equipment has an estimated eight-year useful life. 4. 5. 6. Rented office space on September 1 for a one-year period for $550 per month. Paid annual rent of $6,600 in cash On October 15, received a $1,740 advance cash payment from a client for accounting services expected to be provided in the future. As at December 31, one third of these services had not been performed. On November 1, rented out unneeded office space for a six-month period starting on this date, and received a $1,770 cheque for the first three months' rent.