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Ouellette & Associates began operations on January 1, 2021 Its fiscal year end is December 31 and it prepares financial statements and adjusts its accounts annually. Selected transactions for 2021 follow: 1 2 3 On January 10, bought office supplies for $3,200 cash. A physical count at December 31, 2021, revealed $960 of supplies still on hand Paid cash for a $18,060, one-year insurance policy on February 1. The policy came into effect on this date On March 31, purchased equipment for $20,736 cash. The equipment has an estimated eight-year useful life Rented office space on September 1for a one-year period for $420 per month Paid annual rent of $5.040 in cash On October 15, received a $1.785 advance cash payment from a client for accounting services expected to be provided in the future. As at December 31, one third of these services had not been performed On November 1, rented out unneeded office space for a six-month period starting on this date and received a $1,800cheque for the first three months rent. 4. 5. 6. Date Account Titles and Explanation Debit Credit Jan. 10 Office Supplies 3200 Cash 3200 Feb. 1 Prepaid Insurance 7740 Cash 7740 Mar 31 Equipment 20928 Cash 20928 Sep 1 > Prepaid Rent 6600 Cash 6600 Oct 15 Cash 1740 Unearned 1740 Nov. 1 Cash 2770 Unarned Revenue 1770 e Textbook and Media 1. A basic analysis and a deblt-credit analysis of the required adjustment The adjusting journal entry. Questi Actor 2 Viewin AD No. Basic Type Increase/Decrease Specific Account Questi AD 1. Debit Credit Questi Meront 2 Debit Assets Liabilities Expenses RI Ova Owner's Equity Contra Contrasties Questi A Credit Questi Neru 3 Debit Questio Credit 4 Deblt Credit 5. Debit Credit 6. Debit Credit No. Date Account Titles and Explanation Debit Credit 1 Dec. 31 2. Dec 31 3. Dec 31 4. Dec 31 5 Doc. 31 6 Dec 31

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