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On January 1, you started a tutoring business called Brain Worx and charge $30 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 $1,500 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 $1,200 cash for one year of insurance coverage. c. On March 1, you purchased supplies including paper, pens, and notebooks for $650 cash at Staples. At the end of the year, you had $230 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. 1. On December 31, 2020, Telus sends your December business cell phone bill for $65. The bill is due January 15. 2021. Requlred: 1. For transactions (a) to (d), record the initial journal entry during the year. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 Jan 01, 2020 Computer 1,500 Cash 1,500 2 Feb 01, 2020 Prepaid insurance 1,200 Cash 1,200 3 Mar 01, 2020 Supplies 650 Cash 650 4 Nov 01, 2020 Cash 720 Unearned revenue 720

On January 1, you started a tutoring business called Brain Worx and charge $30 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 $1,500 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 $1,200 cash for one year of insurance coverage. c. On March 1, you purchased supplies including paper, pens, and notebooks for $650 cash at Staples. At the end of the year, you had $230 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. 1. On December 31, 2020, Telus sends your December business cell phone bill for $65. The bill is due January 15. 2021. Requlred: 1. For transactions (a) to (d), record the initial journal entry during the year. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 Jan 01, 2020 Computer 1,500 Cash 1,500 2 Feb 01, 2020 Prepaid insurance 1,200 Cash 1,200 3 Mar 01, 2020 Supplies 650 Cash 650 4 Nov 01, 2020 Cash 720 Unearned revenue 720

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, you started a tutoring business called Brain Worx and charge $30 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 $1,500 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 $1,200 cash for one year of insurance coverage. c. On March 1. you purchased supplies including paper, pens, and notebooks for $650 cash at Staples. At the end of the year, you had $230 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. 1. On December 31, 2020, Telus sends your December business cell phone bill for $65. The bill is due January 15. 2021. Requlred: 1. For transactions (a) to (d). record the initial journal entry during the year. View transaction list View journal entry worksheet No Date General Journal Debit Credit Jan 01, 2020 Computer 1,500 Cash 1,500 2 Feb 01, 2020 Prepaid insurance 1,200 Cash 1,200 3 Mar 01, 2020 Supplies 650 Cash 650 4 Nov 01, 2020 Cash 720 Uneaned revenue 720
Transcribed Image Text:On January 1, you started a tutoring business called Brain Worx and charge $30 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 $1,500 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 $1,200 cash for one year of insurance coverage. c. On March 1. you purchased supplies including paper, pens, and notebooks for $650 cash at Staples. At the end of the year, you had $230 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. 1. On December 31, 2020, Telus sends your December business cell phone bill for $65. The bill is due January 15. 2021. Requlred: 1. For transactions (a) to (d). record the initial journal entry during the year. View transaction list View journal entry worksheet No Date General Journal Debit Credit Jan 01, 2020 Computer 1,500 Cash 1,500 2 Feb 01, 2020 Prepaid insurance 1,200 Cash 1,200 3 Mar 01, 2020 Supplies 650 Cash 650 4 Nov 01, 2020 Cash 720 Uneaned revenue 720
2. For transactions (a) to (f). record the adjusting entries on December 31, 2020. View transaction list Journal entry worksheet 3 4 > 2 5 6 Record depreciation expense for the computer. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2020 Record entry Clear entry View general journal
Transcribed Image Text:2. For transactions (a) to (f). record the adjusting entries on December 31, 2020. View transaction list Journal entry worksheet 3 4 > 2 5 6 Record depreciation expense for the computer. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2020 Record entry Clear entry View general journal
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