You make adjusting journal entries for the month of January as needed. (Start with Journal no. Jan22.1.) 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 $92.50. (Computer $75; Printer $10; Calculators $7.50)

Math Revealed! purchased $726 of furniture on 1/3. You expect the furniture to last 4 years, with a $150 salvage value. You take a full month depreciation on the furniture.

Two computers ($1,260) and three calculators ($441) were also purchased on 1/3. You expect the computers to have a 3-year life (no salvage value) and the calculators to have a 3-year life ($63 salvage value). You take a full month depreciation on the equipment.

On 1/29, shelving was installed. The cost of the shelving was $820. You expect the shelving to last for the term of the lease (24 months). You estimate the salvage value at $100 at the end of the 2 years. You started using the shelving on February 1.

You check the supplies on hand. You estimate that $120 of supplies were used during January.

You charge the amount to a new account (Tutoring supplies expense, a sub-account of Office and Tutoring Costs). You use 632 as the account number and Other Business Expenses as the detail type.

The insurance policy premium paid in January was $360. The policy term is 1/112/31/22.

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

You realize that the $3,000 paid by Teachers College on 1/27 was for a workshop to be held in February.

* You ask Martin about the Marley's two weeks of Persistence sessions paid for (SR-104). Martin says she actually finished all the sessions by end of January.

You also take a look at INV-1009 to Annie Wang. Half of the $400 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 father interest on the $2,500 loan to help get the business started. The last payment was made on 12/31/21. The annual interest rate (simple interest) on the loan is 6%. You forgot to pay him in January. You call and let him know that the check will come in February.

TIP: Just because you didnt pay it in January doesnt mean you dont owe it in January. Consider whether you need a new account here.