CUMULATIVE PROBLEM - Aster Systems
On October 1, 2017, Aster Turane organized a computer service company called Aster
Systems. Aster is organized as a sole proprietorship and will provide consulting services, computer
system installations, and custom program development. Aster Systems has adopted the calendar year
for reporting, and expects to prepare the company's first set of financial statements as of
Oct. 31, 2017. The initial chart of accounts for the accounting system includes these items:
Account Number	Account Name	Account Number	Account Name
101	Cash	302	Aster Turane, Withdrawals
106	Accounts Receivable	403	Computer Services Revenue
126	Computer Supplies	623	Wages Expense
128	Prepaid Insurance	625	Rent Expense
131	Prepaid Rent	626	Insurance Expense
163	Office Equipment	655	Advertising Expense
167	Computer Equipment	676	Mileage Expense
170	Accumulated Depreciation	684	Repairs Expense, Computer
201	Accounts Payable	698	Depreciation Expense
301	Aster Turane, Capital	699	Charitable Donations Expense
Required	Please anwser all MCQ based on the following business transactions.
	Please do all adjustment entries before you anwer your MCQ questions.
	The expected useful life of computer system and office equipment are 3 years.
	There is no residual value for all equipments
	Please use the straight-line method for the depreciation.
Oct. 1	Aster Turane invested $42,000 cash, a $14,400 computer system, and
	$3,600 of office equipment in the business.
2	Paid six months of rent in advance; $12,000.
3	Purchased computer supplies on credit for $1,975 from Triple-One Supplies.
5	Paid $8,640 cash for one year's premium on a property and liability insurance
	policy.
6	Billed Norton Electric $6,300 for installing a new computer system.
8	Paid for the computer supplies purchased from Triple-One Supplies.
10	Hired Donald Gee as a part-time assistant for $345 per day, as needed.
12	Billed Norton Electric another $1,850 for computer services rendered.
15	Received $1,650 from Norton Electric on its account.
17	Paid $375 to repair equipment damaged when moving into the
	new office.
20	Paid $1,950 for an advertisement in the local newspaper.
22	Received the balance owing from Norton Electric on its account.
28	Billed Whistler Resort $9,400 for services.
31	Paid Donald Gee for nine days' work.
31	Aster Turane withdrew $1,200 cash from the business for personal use What is the balance of the prepaid rent account at the month end? 12000 12000 10000 10000 24000 24000 8000