Ouellette & Associates began operations on January 1, 2021. Its fiscal year-end is December 31 and it prepares financial statement
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. On January 10, bought office supplies for $3,600 cash. On December 31, 2021, a physical count revealed $800 of supplies still on hand. 2. Paid cash for a $15,060, one-year insurance policy on February 1. The policy came into effect on this date. 3. On March 31, purchased equipment for $21,120 cash. The equipment has an estimated eight-year useful life. 4. Rented office space on September 1 for a one-year period for $440 per month. Paid annual rent of $5,280 in cash. 5. On October 15, received a $1,755 advance cash payment from a client for accounting services expected to be provided in the future. As of December 31, one-third of these services had not been performed. 6. On November 1, rented out unneeded office space for a six-month period starting on this date and received a $1,650 cheque for the first three months’ rent.
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