Question #1 (26 marks) Penguin Limited has a fiscal year-end of December 31, 2007. Based on an analysis of the unadjusted trial balance at December 31, 2007, the following information is available for the preparation of the year-end adjusting entries: (a) The Computer Supplies account had an unadjusted balance of $3,120 as at December 31, 2007. A physical inventory count indicated that the cost of supplies on hand as at December 31, 2007 was $2,115. (b) An examination of the insurance policy indicated that an insurance policy had been purchased on January 1, 2007 at a cost of $4,320 for 24 months coverage. This amount had been debited to "Prepaid Insurance". (c) On October 1, 2007, the business paid $4,500 for four months rent for the period October 1, 2007 to January 31, 2007. This amount had been debited to "Prepaid Rent". (d) The business recently hired an office assistant. This employee is paid $100 per day and she works each week from Monday to Friday, inclusive. The last pay date in December was Thursday, December 21, for the two-week pay period ending Wednesday December 20. (Hint: the business owes the employee for the number of days worked from December 21 to December 31, 2007 inclusive) (e) On November 1 of the current fiscal year, a 90-day loan receivable in the amount of $25,000 was issued at an interest rate of 6% per annum. (f) On October 1, 2007, the business purchased equipment at a cost of $20,000. The equipment has an estimated service life of 5 years and an estimated salvage value of $5.000. The straight-line method will be used to calculate amortization on the equipment. Required: Prepare year-end adjusting journal entries on December 31, 2007 based on the above information. (Explanations are not required - but please show your calculations below each entry! (Please use the attached General Journal paper!)