80.2K

Verified Solution

Link Copied!

- Midterm at 3pm... Help Submit Save & Exit Saved t 3pm 33 On January 1, you started a tutoring business called Brain Worx and charge $42 an hour for tutoring. The following are your transactions for 2020. Assume Brain Worx uses the straight-line method to depreciate its assets. a. On January 1, you purchased a computer from Apple Inc. for $1,185 cash. You estimate that your computer will last three years. After that time, you will give the computer to your sister as a gift. b. On February 1, you paid $852 cash for one year of insurance coverage. c. On March 1, you purchased supplies including paper, pens, and notebooks for $700 cash at Staples. At the end of the year, you had $210 of supplies left. d. On November 1, Charlotte, a student, pays cash for eight hours of tutoring per month for November 2020, December 2020, and January 2021. e. You tutor George for four hours in December. However, George was away for Christmas and has promised to pa you in January 2021. f. On December 31, 2020, Telus sends your December business cell phone bill for $137. The bill is due January 15 2021 Required: 1. For transactions (a) to (d), record the initial journal entry during the year. View transaction list View journal entry worksheet Debit Credit General Journal No Dato Jan 01, 2020 1.185 1 Computer Cash 1,185 2. For transactions (a) to (f), record the adjusting entries on December 31, 2020. 3 View transaction list 01:07:36 Journal entry worksheet 1 2 3 4 5 6 Record dep Accounts payable Accounts receivable Note: Enter det Accumulated depreciation, Computer Cash Date Dec 31, 2020 Debit Credit

Answer & Explanation Solved by verified expert

See Answer