Saved Help Save & Exit Submit Exercise 3-7 Adjusting entries (annual) LO4 On January 1, Penny started a Bakery business called Comic Bakery and charge $49 an hour for baking lessons. The following are your transactions for 2020. Assume Comic Bakery uses the straight line method to depreciate its assets a. On January 1, you purchased a mixer from Kitchenaid for $1.290 cash. You estimate that your mixer will last three years. After that time, you will donate the mixer to your local charity b. On February 1 you paid $936 cash for one year of insurance coverage c. On March 1. you purchased supplies including flour, sugar and butter for $740 cash at the grocery store. At the end of the year, you had $222 of supplies left d. On November 1, Charlotte, a student, pays cash for eight hours of baking lessons per month for November 2020, December 2020, and January 2021 e. George has four hours of baking lessons in December. However, George was away for Christmas and has promised to pay you in January 2021 1. On December 31, 2020, Telus sends your December business cell phone bill for $138. The bill is due January 15, 2021. Required