This comprehensive problem was introduced in Chapter 2 and continues in Chapters 4 and 5. If the
Chapter 2 segment has not been completed, the assignment can begin at this point.
After the success of its first two months, Aster Turane has decided to continue operating
Aster Systems. (The transactions that occurred in these months are described in Chapter 2.)
Before proceeding in December, Turane adds these new accounts to the chart of accounts for
the ledger:
Account		No.
Accumulated Depreciation, Office Equipment		164
Accumulated Depreciation, Computer Equipment		168
Wages Payable		210
Unearned Computer Services Revenue		236
Depreciation Expense, Office Equipment		612
Depreciation Expense, Computer Equipment		613
Insurance Expense		637
Rent Expense		640
Computer Supplies Expense		652
Required
1. Prepare journal entries to record each of the following transactions for Aster Systems. Post the
entries to the accounts in the ledger.
Dec. 3	Paid $3,800 to the Kingsway Garden Mall for the company's share of mall
	advertising costs for December.
3	Paid $1,040 to repair the company's computer.
4	Received the balance owing from Kinsetta Groceries.
10	Paid Donald Gee for eight days' work at the rate of $345 per day.
14	Notified by Kinsetta Groceries that Aster's bid of $6,500 on a proposed
	project was accepted. Kinsetta paid an advance of $3,000.
17	Purchased $740 of computer supplies on credit from Triple-One
	Supplies.
18	Sent a reminder to Dinwoody Entertainment to pay the $4,230 originally
	recorded on November 8.
20	Completed a project for Langara Lodge and received $1,100 cash.
24-28	Took the week off for the holidays.
31	Received $1,800 as partial payment from Dinwoody Entertainment.
31	Reimbursed Aster Turane's business automobile expenses of 1,800 kilometres
	at $1.60 per kilometre.
31	Aster Turane withdrew $800 cash from the business.

2. Prepare adjusting entries to record the following additional information collected on
December 31, 2020. Post the entries to the accounts in the ledger.
Dec. 31	a. The December 31 inventory of computer supplies was $480.
	b. Three months have passed since the annual insurance premium was paid.
	c. 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.
	d. The computer equipment is expected to have a five-year life with no
	residual value.
	e. The office equipment is expected to have a ten-year life with no
	residual value.
	f. Prepaid rent for three of the six months has expired.
3. Prepare an adjusted trial balance as of December 31, 2020.
4. Prepare an income statement and statement of changes in equity for the three
months ended December 31, 2020.
5. Prepare a balance sheet as of December 31, 2020.