Question #1 (40 marks) Company A's business involves hosting sereal concerts per year. The company's year-end is December 31, 2001. The company records all prepaid costs as assets and all uneared revenues as liabilities and adjusts accounts ammually 1. Prepaid supplies amounted to $835 on December 31, 2020. On June 10, 2021, additional supplies were purchased for $1.990 cash On December 31, 2001, a physical count showed that prepaid supplies amounted to 5940 2. Purchased equipment on August 1, 2021, for $50 400 cash The equipment was estimated to have a useful life of 12 years. The company's policy is to employ the straight line method and depreciation is rounded to the nearest mouth 3. The company puts on eight concerts each on Season ticketssell for 5430 each and 235 sold in July for the upcoming 2001- 2022 son, which begins in September 2021 and ends in April 2012 (e concert per month) The company credited named Revenue for the full amount received 4. Every Wednesday, the total payroll is 55.520 for salaries cared during the presious workwerk Monday-Friday Salanes were hast paid on Wednesday, December 29. This vent December 31 falls tanday 5. The company also rents the space to local children schot, which uses the space for als twice a week at a rate of 570 per month. The choir was short of cash at the beginning of December and sent the company chaque for $540 on December 10, anda promise to pay the balance in January On Juary 10.3021, the company nevad a chesse for the balance on ing from December At this time theanuaryen was also paid 6 On June 1, 2001, the company bond S24 000 for its bank at all interest rate of 50% The principal and literes are lo be repaid on May 30 2022 9 Upon meiering in accounting second December 31 2001 the company noted but the belote bill for the month of December had not yet been remet A call to the phone con determined that the December telephone bill was $530 The bill was paid os January 12 2001 a) Prepare the journal entries to record the 2021 transactions for items 1 through 6. b) Prepare the year-end adjusting entry for items 1 through 7