Monthly depreciation expense for the equipment purchased prior to 12/31 is $91.50.

(Computer $75; Printer $10; Calculators $6.50)

Math Revealed! purchased $480 of furniture on 1/4. You expect the furniture to last 4

years, with no salvage value. You take a full month depreciation on furniture.

Two computers ($756) and three calculators ($441) were also purchased on 1/4. You

expect the computers to have a 3-year life (no salvage value) and the calculators to have

a 3-year life ($90 salvage value). You take a full month depreciation on the equipment.

On 1/29, shelving was installed. The cost of the shelving was $649. You expect the

shelving to last for the term of the lease (24 months). You estimate the salvage value at

$49 at the end of the 2 years. You started using the shelving on February 1

You check the supplies on hand. You estimate that $80 of supplies were used during January.

The insurance policy premium paid in January was $480. The policy term is 1/112/31/21.

You check to make sure that all the revenue recorded in January was earned during the month.

You realize that the amount paid by Teachers College on 1/29 was for a workshop to

be held in February.

You also take a look at INV-1009 to Annie Wang. Half of the $360 billed on 1/14 was

for February tutoring.

TIP: Consider whether you need a new account here. Choose an account number that

fits with the account numbering scheme (assets are 100s; liabilities are 200s; revenues

are 400s; expenses are 600s).

Martin has agreed to pay his parents interest on the $2,000 they loaned him to get the

business started. The last payment was 12/31/19. The annual interest rate (simple interest)

on the loan is 6%. You forgot to pay them in January. You call and let them know that the

check will come in February.

TIP: Just because you didnt pay it in January doesnt mean you dont owe it in Janu-

ary. Consider whether you need a new account here.

01/31 Journal Entry for the month of January.

NEED JOURNAL ENTRY FOR 1/31