January 3 1.3 The company paid $1,560 to the Pitt Insurance Agency for a one-year insurance policy. (Check #2) Again, the insurance will be used over multiple periods. Therefore, you should record the cost as an asset and defer recognizing the expense until the end of the month. 1,560 Cash 1,560 Prepaid in January 4 1.4 The company purchased store equipment from Jones Equipment Co. The equipment cost was $4,700. The company paid $300 in cash and agreed to pay the balance within 45 days. (Check #3) January 5 1.5 You purchased various office supplies for SS00 from Office Supply Warehouse Hint: You will not use all of the supplies during January, and therefore will record the supplies in an asset account - and will adjust at the end of the month. You purchased the supplies with cash. (Check #4) January 5 1.6 The company purchased various computer repair supplies from Williams Supply Co. Again, you purchased enough supplies to last for at least several months. The cost of the supplies was $1,750. You purchased the supplies on account and will have to pay within 30 days. nglish (United States) Focus January 5 1.6 The company purchased various computer repair supplies from Williams Supply Co. Again, you purchased enough supplies to last for at least several months. The cost of the supplies was $1,750. You purchased the supplies on account and will have to pay within 30 days. Hint: Use the Repair Supplies account to record the new asset and adjust at the end of the month. January 7 1.7 To make the community aware of your new business and generate some customers, you advertised on a local radio station, paying $450 in cash. (Check #5) January 8 1.8 The first customer arrived! Kate Rooney brought in a computer needing a quick repair. She was willing to wait while you did the work. When you finished, you nresented her with a bill for $128. She gave you a check for $128 nglish (United States) Focus E January 8 1.8 The first customer arrived! Kate Rooney brought in a computer needing a quick repair. She was willing to wait while you did the work. When you finished, you presented her with a bill for $128. She gave you a check for $128. January 10 1.9 Another customer, Jim Schmidt, brought in several computers needing repair. You told him that you would have the work done by January 13. You asked Jim for a deposit of $100. January 10 1.10 Also on January 10, a customer named Fran Smith emailed and wanted to set up a tutorial webinar for a graphic design idea. You negotiated a price of $85 for the webinar, and set up the date/time for the webinar as January 15 at 9:00 am. January 13 1.11 You completed the work for Jim Schmidt. When he arrived at your store, you gave him a bill for $525. He paid you the balance due, and you presented him with the repaired computers. nglish (United States) Focus E E
