You make adjusting journal entries for the month of January as needed. (Start with Journal no. Jan21.1.) You carefully consider the following: Math Revealed! used the straight-line method to determine depreciation expense for all office equipment. 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 salvige 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 S49 at the end of the 2 years. You started using the shelving on February 1. a 2021 Cambridge Business Publishers 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 1/1-12/31/21. You check to make sure that all the revenue recorded in January was earned during the month. You realize that the amount paid by Teacher's 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 a 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 didn't pay it in January doesn't mean you don't owe it in Janu- ary. Consider whether you need a new account here. You make adjusting journal entries for the month of January as needed. (Start with Journal no. Jan21.1.) You carefully consider the following: Math Revealed! used the straight-line method to determine depreciation expense for all office equipment. 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 salvige 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 S49 at the end of the 2 years. You started using the shelving on February 1. a 2021 Cambridge Business Publishers 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 1/1-12/31/21. You check to make sure that all the revenue recorded in January was earned during the month. You realize that the amount paid by Teacher's 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 a 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 didn't pay it in January doesn't mean you don't owe it in Janu- ary. Consider whether you need a new account here
