The following bullet points provide details on some of the above accounts:
• Pluto paid $2,800 on 7-1-19 to insure their vehicles. The insurance policy expires 7-1-20.
• Trghiceswpurctasedo1-1-18ifor $30,000. Plots dlreciation on the
ofn$4p0a,,mOr00enwtteassrtesc.orded on 6-30-19. Goodwill has an indefinite useful life but is subject
• Pluto requires all tutoring clients to pay cash in advance of tutoring services. Revenue is
recognizable (i.e., recordable by an accountant) when Pluto performs tutoring services.
• Tutors earn wages at a rate of $900 per month. Pluto withholds 30% of wages earned and remits
withholdings on behalf of their tutors to various government agencies (usually on the same day
that tutors are paid). Pluto is not subject to payroll taxes.
• pPaluytmo eisnstuse:t F5i-iyiteoaar mboonrtcilzseastt9h4e odrilsz1u-r.i1t9c.)nlnatesrterastigishtireabblaestn.nually with the first
• Pluto’s common stock has a $5 par value per share. As 01 12-31-19, there are 750 shares
authorized, 650 shares issued, and 500 shares outstanding.