Waterway Corporation began operations on January 2. Its year end is December 31, and it adjusts its accounts annually. Selected transactions for the current year follow: 1. On January 2, purchased supplies for $4,470 cash. A physical count at December 31 revealed that $640 of supplies were still on hand. 2. Purchased a vehicle for $47,400 on April 1, paying $4,200 cash and signing a $43,200 bank loan for the balance. The vehicle is estimated to have a useful life of 5 years and the company uses straight-line depreciation. The bank loan has an interest of 3%, payable at maturity. 3. Purchased a $3,360, one-year insurance policy for cash on August 1. The policy came into effect on that date. 4. 5. Received a $1,510 advance cash payment from a client on November 9 for services to be performed in the future. As at December 31, half of these services had been completed. On December 1, the company rented additional office space for a six-month period starting on December 1 for $1,220 each month. It paid rent for the months of December and January in advance on this date.