1 Task.

Adjusting the accounts. Journalize following transactions and make corresponding adjustments on Jan 31, 2022.

1. Jan 2, XYZ Startup Company paid $600 for a three-month insurance policy.
2. Jan 5, purchased PP&E on account for $2400. Useful life of the PP&E is 2 years. Straight-line depreciation method is used.
3. Jan 6, received $3600 for marketing services expected to be completed by
4. June 30.
5. Jan 8, signed a six-month Note Payable in the amount of $6000. Annual interest rate is 12%.
6. Jan 15, paid $1300 for supplies purchased. The supplies on hand on Jan 31 are $800.

2 Task

Depreciation. XYZ Startup Company purchased an equipment on Feb 1, 2010. Hint. Use a partial-year depreciation calculation. Cost - 7,300$ Expected residual value - 100 $

Estimated useful life in years - 4 Estimated useful life in operating hours - 7000

Compute annual depreciation using the following methods:

1. Straight - Line Method;
2. Units - of - Output Method (2010 - 1700 hrs; 2011 - 1300 hrs; 2012 - 2100 hrs; 2013

- 1900 hrs);

(c) Double Declining Balance Method.

Provide your answers with both journal entries and tables.

with detailed explanation plz