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On January 1, you started a tutoring business called Brain Worx and charge $38 an hour for tutoring. The following are your transactions for 2020.
On January 1, you started a tutoring business called Brain Worx and charge $38 an hour for tutoring. The following are your transactions for 2020. Assume Brain Worx uses the straight-line method to depreciate its assets.
- On January 1, you purchased a computer from Apple Inc. for $1,125 cash. You estimate that your computer will last three years. After that time, you will give the computer to your sister as a gift.
- On February 1, you paid $804 cash for one year of insurance coverage.
- On March 1, you purchased supplies including paper, pens, and notebooks for $930 cash at Staples. At the end of the year, you had $279 of supplies left.
- On November 1, Charlotte, a student, pays cash for eight hours of tutoring per month for November 2020, December 2020, and January 2021.
- You tutor George for four hours in December. However, George was away for Christmas and has promised to pay you in January 2021.
- On December 31, 2020, Telus sends your December business cell phone bill for $94. The bill is due January 15, 2021.
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