Question

Juan Orchid is a photographer who has started a new photography business. On December 1, 2018, Juan decided to incorporate under the name Mont Alto Campus Photography. Juan has hired you to provide accounting services for the company. Read the instructions at the top of each tab. Prepare the required journal entries for the month of December, the necessary adjusting entries and closing entries as of December 31, and a complete set of financial statements, to include all proper labels. Show less A Requirement General Journal General Ledger Trial Balance Income St St of Ret Earnings Balance Sheet Requirement: General Journal tab: Juan Orchid is a photographer who has started a new photography business. On December 1, 2018, Juan decided to incorporate under the name Mont Alto Campus Photography. Juan has hired you to provide accounting services for the company. Transactions 1-11: Prepare journal entries to record transactions for the first month in business. Transactions 12-15: Prepare the required adjusting entries. Transactions 16-19: Prepare the necessary closing entries. General Ledger tab: Entries are posted automatically to the general ledger. Abnormal balances are indicated in brackets. Review the general ledger accounts for normal balances. Trial balance tab: Use the dropdown button to review the unadjusted, adjusted, or post-closing trial balance. Review for normal ending balances. Income statement tab: Select the financial statement elements and accounts properly included on the income statement. The balances automatically populate from the trial balance selected. Statement of retained earnings tab: Select the proper label for each value appearing on the statement of retained earnings. Make sure the ending balance agrees with the general ledger balance. Balance sheet tab: Select the financial statement elements and accounts properly included on the balance sheet. The balances automatically populate from the trial balance selected.

Answer 1

Mont Alto Campus Photography Journal entries Date Account 1-Dec Cash Common Stock Credit Calculation Debit $ 34,000 $ 34,000 $ 9,720 1-Dec Photography Equipment Cash $ 9,720 $ 2,100 2 months rent 1-Dec Prepaid Rent Cash $ 2,100 $ 3,400 4-Dec Cash Unearned Revenue $ 3,400 $ 2,160 9-Dec Cash Unearned Revenue $ 2,160 $ 1,680 12-Dec Supplies Accounts Payable $ 1,680 $ 20,800 15-Dec Accounts Receivable Service Revenue $ 20,800 $ 1,680 18-Dec Utilities expense Accounts Payable $ 1,680 $ 700 28-Dec Accounts Payable Cash $ 700 $ 1,250 30-Dec Salaries expense Cash $ 1,250 $ 1,300 $ 1,300 30-Dec Dividends Cash Adjusting entries 31-Dec Depreciation expense Accumulated Depreciation $ 270 =9,720/3*1/12 $ 270 $ 1,050 =2,100/2 31-Dec Rent expense Prepaid Rent $ 1,050 $ 2,160 31-Dec Unearned Revenue Service Revenue $ 2,160 $ 1,340 =1,680-340 $ 1,340 31-Dec Supplies expense Supplies Closing entries 31-Dec Service Revenue Income Summary $ 22,960 $ 22,960 $ 5,590 31-Dec Income Summary Salaries expense Rent expense Utilities expense Supplies expense Depreciation expense $ $ $ $ $ 1,250 1,050 1,680 1,340 270 $ 17,370 31-Dec Income Summary Retained Earnings $ 17,370 $ 1,300 31-Dec Retained Earnings Dividends $ 1,300

Credit Debit 24,490 20,800 1,680 2,100 9,720 Mont Alto Campus Photography Account Names Cash Accounts Receivable Supplies Prepaid Rent Photography Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries expense Rent expense Utilities expense Supplies expense Depreciation expense Totals Adjusted TB Debit Credit 24,490 20,800 340 1,050 9,720 270 2,660 3,400 34,000 Post Closing TB Debit Credit 24,490 20,800 340 1,050 9,720 270 2,660 3,400 34,000 16,070 2,660 5,560 34,000 1,300 1,300 20,800 22,960 1,250 1,680 1,250 1,050 1,680 1,340 270 63,290 63,020 63,020 63,290 56,400 56,400

22,960 22,960 Mont Alto Campus Photography Income Statement For the Month Ended December 31, 2018 Revenues Service Revenue Total Revenues Expenses Salaries expense Rent expense Utilities expense Supplies expense Depreciation expense Total Expenses Net Income 1,250 1,050 1,680 1,340 270 5,590 17,370 Statement of Retained Earnings For the Month Ended December 31, 2018 Retained Earnings, December 1, 2018 Net Income Less Dividends Retained Earnings, December 31, 2018 17,370 (1,300) 16,070

Mont Alto Campus Photography Balance Sheet As of December 31, 2018 Assets Current Assets Cash Accounts Receivable Supplies Prepaid Rent Total Current Assets 24,490 20,800 340 1,050 46,680 Property, Plant & Equipment Photography Equipment Accumulated Depreciation Total Property, Plant & Equipment Total Assets 9,720 (270) 9,450 56,130 Liabilities & Stockholders Equity Current Liabilities Accounts Payable Unearned Revenue Total Current Liabilities 2,660 3,400 6,060 Stockholders Equity Common Stock Retained earnings Total Stockholders Equity Total Liabilities & Stockholders Equity 34,000 16,070 50.070 56,130