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 bilil Sdue January 15. 2021. Required: 1. For transactions (a) to (d). record the initial journal entry during the year.
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 bilil Sdue January 15. 2021. Required: 1. For transactions (a) to (d). record the initial journal entry during the year.
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 50P
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The 5b photo only. Thank you.
![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
Journal entry worksheet
1
3 4
>
2
Record purchase of computer.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
| Jan 01, 2020](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd7c55185-6e5a-46cc-8f17-f8a7e78202f6%2Fef18e806-70e1-4f22-a5cd-23b3419d8343%2Fdkqjpql_processed.jpeg&w=3840&q=75)
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
Journal entry worksheet
1
3 4
>
2
Record purchase of computer.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
| Jan 01, 2020
![2. For transactions (a) to (f), record the adjusting entries on December 31, 2020.
View transaction list
Journal entry worksheet
3 4 5 6
1
2
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd7c55185-6e5a-46cc-8f17-f8a7e78202f6%2Fef18e806-70e1-4f22-a5cd-23b3419d8343%2F1xtzqp4_processed.jpeg&w=3840&q=75)
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 5 6
1
2
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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