Reference no: EM132424283

Question -

1. Last year, on January 1, 2018, Mindy paid for a three-year insurance contract totaling $9,600. Record this year's (2019's) expiration of insurance.

2. Throughout the year, Mindy has used up $8,750 of baking supplies used for baked goods.

3. Mindy had sales of $14,500 for her baked goods. She only accepted cash and did not collect sales tax.

4. Mindy currently rents a small space that has room for her kitchen and a retail area. Her rent expense per month is $750. She pays her rent in cash, and has not recorded a rental payment in the books yet this year.

5. Mindy also paid $200 a month in utilities throughout the year in cash.

6. On January 1st, Mindy sold one of her ovens for $3,000. She originally purchased for $4,500 and it had accumulated depreciation of $2,700.

7. In previous years Mindy had purchased all of her kitchen equipment for a total of $16,000. Current year depreciation for the remaining kitchen equipment (after the sale of the oven) is $2,300.

8. On March 1st of this year, Mindy decided to start selling baking sheets as well as baked goods. She purchased shelving and tables to display her retail inventory on account for $4,000.

9. Mindy determined the shelving and tables that she purchased on March 1st to have a useful live of 5 years. She uses straight-line depreciation. Record depreciation for this year.

10. Mindy has been teaching baking classes in people's homes. She sells tickets in advance and accepts credit cards. She had done 20 parties in 2019, with 8 people attending each party, at $100 per ticket. She pays a credit card fee of 2%.