50.1K

Verified Solution

Link Copied!

On January 1, you started a tutoring business called Brain Worx and charge $47 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 $1,260 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 $912 cash for one year of insurance coverage. . c. On March 1, you purchased supplies including paper, pens, and notebooks for $1,100 cash at Staples. At the end of the year, you had $330 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 pay you in January 2021. f. On December 31, 2020, Telus sends your December business cell phone bill for $111. 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 Journal entry worksheet 1 2 3 4 > Record purchase of computer. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01, 2020 er transactions (a) to (f), record the adjusting entries on December 31, iew transaction list Journal entry worksheet 1 2 3 4 5 6 Record depreciation expense for the computer. Note: Enter debits before credits. Debit General Journal Date Credit Dec 31, 2020

Answer & Explanation Solved by verified expert

See Answer