Question

Record these 3 months (quarter of a fiscal year) of transactions using your Excel Accounting Workbook with the following ... 1) Journal 2) Ledger Accounts 3) Trial Balance 4) Balance Sheet 5) Income Statement 6) COA

Rubric:

Structure/Submittal of the Excel Workbooks: 70 points (-5 for each incorrect item ie. Titles, Worksheet structure and view, formulas)

Financial Data Accuracy: 30 points (0-2 errors -0; 3-6 errors -5; 7-10 errors -10; 11-14 errors -20, 15+ errors -30)

8/1 - Sarah Smiles, the owner of a small photography business, is getting bigger and needs to hire bookkeeper. She has been keeping her accounting records herself and has provided you with her last balance sheet. It is as follows...(See Handout)

8/1 - Sarah took out a mortgage with Sun Bank to purchase a studio for $100,000 to grow the business.

8/2 - Bought $7,000 of furniture from Furniture Superstore with her store credit card.

8/3 - Bought $2,000 worth of supplies on account. The vender is Photo Supplies R Us.

8/4 - Bought $3,000 photo paper, frames, and materials for photo books to be sold from Photo Supplies R Us. She charges $220 per hour for the service she provides. Sarah includes sales tax in the sale price.

8/5 - Bought a 6-Month insurance policy from All State for $850.

8/6 - Was hired to be the photographer for Stacy Chapburn's wedding. Stacy gave "Studio 16" a deposit of $1,000 to hold the date.

8/7 - Amy Fackler, a previous cash customer, came back and bought 2 photo books from "Studio 16" for $100 a piece, but only paid $50. Those books cost "Studio 16" $15 a piece.

8/13 - Hired an assistant, Marty Costello, for the Chapburn wedding and paid him $400.

8/20 - Paid utility bills to PSE&G totaling $500.

8/22 - Was paid $4,000 up front from Christine Zimmer for her engagement photos and upcoming wedding.

9/1 - Paid mortgage of $1,000. ($300 went towards principal, $250 went towards interest, and $450 went towards realestate taxes)

9/15 - Took senior pictures all last week (40 hours) for Triton High School seniors totaling $8,800, but did not get paid immediately.

9/15 - Paid off our bill from "Photo Supplies R Us"

9/15 - Made payment to the Furniture Superstore Credit Card for $500 ($400 went to principal; $100 went to interest)

10/1 - Received payment of $5,000 from Triton High School.

10/1 - Paid mortgage of $1,000. ($300 went towards principal, $250 went towards interest, and $450 went towards realestate taxes)

10/5 - You complete Chirstine's engagement photos and wedding that was paid in full up front. Her total order included 2 days of photographing (12 hours) a photo book for $1,360 that cost "Studio 16" $350.

10/28 - Performed Stacy's wedding for a total of $3,500 Less the deposit. (Included in that $3,500 was the sale of a photo book for $1,000 and frame pictures sold for $800. The inventory sold cost Studio 16 $300)

10/30 - End of the quarter you realize some of your insurance has expired.

10/30 - End of the quarter you realize you only have $300 worth of supplies left.

10/30 - We realize we owe $600 to our employees from previous job worked.

10/30 - Sarah includes sales tax in all sale prices charged to the customer. She is still responsible to pay the 7% sales tax on her sales for this quater to be paid 12/1.

10/30 - Sarah realizes she can depreciate her camera at a rate of $700 per year.

10/30 - The owner withdrew $2,500 from the business.

Answer 1

It is not mentioned anywhere the relation between Sarah Smiles and Studio 16. Hence, it is assumed Studio 16 is a third party.

Date	Particulars	Debit	Credit
		Amount ($)	Amount ($)
01-Aug	Studio	100000
	To Mortgage Payable		100000
02-Aug	Furniture	7000
	To Credit Card Company		7000
03-Aug	Purchases	2000
	To Accounts Payable - Photo Supplies R Us		2000
04-Aug	Purchases	3000
	To Accounts Payable - Photo Supplies R Us		3000
05-Aug	Prepaid Insurance	850
	To Cash		850
06-Aug	Since these entries do not pertain to Sarah Smiles, the same shall not be recorded in Sarah Smiles books.
07-Aug
13-Aug	Salary / Assistant fess	400
	To Cash		400
20-Aug	Utilities expense	500
	To Cash		500
22-Aug	Cash	4000
	To Sales tax payable		261.68
	To Income from services		3,738.32
01-Sep	Mortgage Payable	300
	Interest expense	250
	Real Estate taxes	450
	To Cash		1000
15-Sep	Accounts Receivable - Triton High School	8800
	To Sales tax payable		575.70
	To Income from services		8,224.30
15-Sep	Accounts Payable - Photo Supplies R Us	5000
	To Cash		5000
15-Sep	Credit Card Company	400
	Credit Card expenses	100
	To Cash		500
01-Oct	Cash	5000
	To Accounts Receivable - Triton High School		5000
01-Oct	Mortgage Payable	300
	Interest expense	250
	Real Estate taxes	450
	To Cash		1000
05-Oct	Accounts Receivable - Christine	4000
	To Sales tax payable		261.68
	To Income from services		3,738.32
28-Oct	Accounts Receivable - Stacy	4300
	To Sales tax payable		281.31
	To Income from services		4,018.69
	(Although 1000$ advance was paid to Studio 16, the same has been deducted from gross earnings of Sarah Smiles)
30-Oct	Insurance expense (850/6*3)	425
	To Prepaid insurance		425
30-Oct	Salaries expense	600
	To Salaries payable		600
30-Oct	Depreciation expense (700/12*3)	175
	To Accumulated depreciation - Camera		175
30-Oct	Drawings	2500
	To Cash		2500

Trial Balance
Particulars		Debit	Credit
		Amount ($)	Amount ($)
Cash o/d			2750
Accounts Receivable		12100
Prepaid Insurance		425
Studio		100000
Furniture		7000
Accumulated Depreciation - Camera			175
Accounts Payable
Credit Card company			6600
Mortgage Payable			99400
Salaries Payable			600
Sales tax Payable			1,380.37
Drawings		2500
Income from services			19,719.63
Insurance expense		425
Real Estate taxes		900
Salaries expense		1000
Purchases		5000
Utilities expense		500
Interest expense		500
Credit Card expenses		100
Depreciation expense - Camera		175
Total		130625	130625

Due to space constraints, cannot post full answer