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.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 64P

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