Question 2 10 marks

Aster Turane prepares annual statements. The year end is December 31. Prepare annual adjusting entries to record the following additional information collected on Dec. 31.

Dec. 31 The Dec. 31 inventory of computer supplies was $480. (Current balance is $3,135)

Dec. 31 Three months have passed since the annual insurance premium was paid. (Annual insurance was originally purchased for $8,640)

Dec. 31 As of the end of the year, Donald Gee has not been paid for four days of work at the rate of $345 per day.

Dec. 31 The computer equipment is expected to have a five-year life with no residual value. (Initially purchased 3 months ago for $5,040)

Dec. 31 The office equipment is expected to have a ten-year life with no residual value. (Initially purchased 3 months ago for $12,000)

Dec. 31 Prepaid rent for three of the six months has expired. (initially paid $9,300 for six months rent)