Dr. Erica Chan, MD owns EC Health Clinic. She prepares annual financial statements and has a December 31, 2020 year-end. a. On October 1, 2020, Dr. Chan prepaid $10,400 for four months of rent. b. On November 1, 2020, Dr. Chan prepaid $132 to renew the clinic's magazine subscriptions. The subscription is for one year, c. On December 1, 2020, Dr. Chan pays $1,875 for supplies. At the end of the year, $1,250 of supplies had not been used Required: For the above transactions, record the initial journal entry and the adjusting entry required on December 31, 2020 a. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 Oct 01, 2020 Prepaid rent Cash Mean Beans, a local coffee shop, has the following assets on January 1, 2020. Mean Beans prepares annual financial statements and has a December 31, 2020 year-end. The company's depreciation policy is to use the straight-line method to depreciate its assets. a. On January 1, 2020, purchase equipment costing $20,100 with an estimated life of five years. Mean Beans will scrap the equipment after five years for $0. b. On July 1, 2020, purchase furniture (tables and chairs) costing $20,100 with an estimated life of ten years. Mean Beans estimates that it can sell the furniture for $4,400 after ten years. c. On January 1, 2018, Mean Beans had purchased a car costing $25,250 with an estimated life of eight years. Mean Beans estimates that it can sell the car for $5,050 after eight years. Required: 1-a. For each transaction, calculate the current year annual depreciation expense. . Annual depreciation expense on equipment b. Annual depreciation expense on furniture c. Annual depreciation expense on car Splish Splash Art is a centre that offers children's music and dance lessons, Splish Splash prepares annual financial statements and has a December 31, 2020 year-end, a. On September 1, Splish Spagh Art collects $15,600 cash for dance lessons running from September 1, 2020 to December 31, 2020 b. On October 1, Splish Splash Art collects $5,200 cash in advance from the Music Box Inc. ($2,900 per month) to rent its performance stage for the full month of December 2020 and January 2021. c. On October 1, 2020, Splish Splash Art collects $9,200 cash for four months of music lessons for a local private school. The lessons run from October 1, 2020 to January 31, 2021, Required: For the above transactions, record the initial Journal entry and the adjusting entry required on December 31, 2020 View transaction list Journal entry worksheet 2 Jurassic Jumpers Co. (JJ Co.) offers bungee jumping for those looking for an extreme outing. JJ Co. prepares annual financial statements and has a December 31, 2020 year-end. a. On April 1, 2020, JJ Co. took out a five-year, $710,000 bank loan with an interest rate of 3%. Interest expense is paid on the first day of each month. b. On July 1, 2020, JJ Co. issued a two-year, $58,000 Note Receivable with an interest rate of 4%. Interest income will be collected on January 1 and July 1 of each year. c. On December 15, 2020, JJ Co. took a university student club bungee jumping for $2,400. The student club was invoiced on December 31, 2020 and paid JJ Co. on January 15, 2021. Required: Record the adjusting journal entries at December 31, 2020 View transaction list Journal entry worksheet 1 2 3 On January 1, you started a tutoring business called Brain Worx and charge $43 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 $1,200 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 $864 cash for one year of insurance coverage. c. On March 1, you purchased supplies including paper, pens, and notebooks for $840 cash at Staples. At the end of the year, you had $252 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 $140. 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