1. The transactions for Conway Floor Covering Inc. for the year 2016 have been recorded in the accounting system. This assignment requires you to prepare adjusting entries for December 2016.

Dec. 31 Services were provided to a customer for $550. The cash was collected in advance on December 10, 2016.

Dec. 31 On September 1, 2016, Conway Floor Covering Inc. had paid $5,400 as rent for a six month period. This had been recorded as prepaid rent.

Dec. 31 The amount of supplies available at the end of December was $400. The amount of supplies at the beginning of the period was $260. $350 of supplies were purchased during the year.

Dec. 31 A computer was purchased on January 1, 2012, for $2,400. The useful life of the computer is 4 years and the salvage value is $200