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Problem 2 Sham Avengs ned by Bash Sharma and began operation on november 1, 2020 The company has an October 31 Decal year end and

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Problem 2 Sham Avengs ned by Bash Sharma and began operation on november 1, 2020 The company has an October 31 Decal year end and prepares adients on an as the own sa sting of accounts at October 31, 2021 before adjustments Alsaccounts have normal acances Sharma Advertising Trial Balance October 31, 2021 Debit Credit Cash 515,200 2.100 2.500 500 Accounts receivaba Supplies Prepaid insurance Prepaid rent Once equipment Once lumtur 2.250 6,200 3.400 2 500 Accounts payable Uneamed revenue 3.600 8.400 Noles payable R Sharma, capit 10,000 500 R Sharma, drawings Service revenue 41.200 Salanes expense 24,400 Rent expense 3,250 $65,700 $65.700 Additional information: 1. The landlord for the property Sharma rents required a 3-month rent prepayment of $2,250 on September 1, 2021 2 The office equipment has a 4-year useful le 3 The orice furniture has an 8-year useful life 4. A physical count of the supplies shows there was $850 on hand at October 31 5. An analysis of the uneamed revenue account shows that $1,350 remains uneamed at October 31 6. Purchased a one year insurance policy on March 1, 2021 for $600 The policy came into effect on this cate Instructions A Joumalize the adjusting entries at October 31 B. What is the purpose of recording depreciation

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