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4. Breaktime Corporation sells car racing equipment and consults on how to make vehicles faster. They completed the following transactions during December. Analyze each transaction and make the appropriate journal entry in the space provided on the next page. 2 points per entry for a total of 30 points. Date 12/1 12/2 12/3 12/4 Amount $12,000 $35,000 $2,600 $10,000 12/15 12/16 12/18 $6,000 $14,000 $16,000 12/19 $14,000 Transaction Breaktime Corporation pays cash in advance that will cover the next six months rent Breaktime Corporation purchases equipment by signing a Note Payable Breaktime Corporation pays cash to purchase new office supplies today. Breaktime Corporation receives cash from a client for vehicle consulting service completed today. Breaktime Corporation pays cash to employees for salaries Breaktime Corporation does some vehicle consulting services on account Breaktime Corporation receives cash for vehicle consulting services to be performed later in the month. Breaktime Corporation receives the cash for the consulting services performed on account on Dec 16 Breaktime Corporation pays cash for the office supplies purchased on account on Dec. 17. Prepare the adjusting entry to account for the fact Breaktime Corporation has used up $700 of office supplies Prepare the adjusting entry to account for the fact 1 month of prepaid rent was used up for December. Enter the adjusting entry for depreciation of equipment Breaktime Corporation owes $2,400 salaried to employees that will be paid next week Breaktime Corporation has completed vehicle consulting services for a client and sent the clients a bill, Breaktime Corporation expects to get the cash in January Prepare the adjusting entry to account for the fact Breaktime Corporation completed the work that had been paid in advance on 12/18. 12/20 $2,000 12/31 $700 12/31 $2,000 12/31 12/31 12/31 $500 $2,400 $4,000 12/31 16,000

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