Question

Make a General Journal from the information below

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 “studio 16” $14 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 real-estate 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 Christine’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 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 quarter 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

Journal Entries:
Date	Account Titles and Explanations	Debit	Credit
8/1.	Studios	$100,000
	Notes Payable		$100,000
	(To record the purchase of studios on mortgage from bank)
8/2.	Furniture	$7,000
	Accounts Payable		$7,000
	(To record the purchase of furniture on credit)
8/3.	Supplies	$2,000
	Accounts Payable		$2,000
	(To record the purchase of supplies on account)
8/4.	Inventory	$3,000
	Accounts Payable		$3,000
	(To record the purchase of inventory on account)
8/5.	Prepaid Insurance	$850
	Cash		$850
	(To record the prepaid insurance for 6 months in advance)
8/6.	No entry is prepared for hiring an employee.
8/7.	Cash	$50
	Accounts Receivable (2 books * $100 = $200 - $50)	$150
	Sales Revenue		$200
	(To record sales revenue)
	Cost of Goods Sold (2 books * $14)	$28
	Inventory		$28
	(To record the cost of goods sold)
8/13.	No entry is prepared for hiring an employee.
8/20.	Utilities Expense	$500
	Cash		$500
	(To record the payment of utilities expense)
8/22.	Cash	$4,000
	Unearned Service Revenue		$4,000
	(To record the collection of cash for services to be performed in future period)
9/1.	Notes Payable	$300
	Interest Expense	$250
	Tax Expense	$450
	Cash		$1,000
	(To record the payment of note, interest and tax)
9/15.	Accounts Receivable	$8,800
	Service Revenue		$8,800
	(To record the services provided on account)
9/15.	Accounts Payable	$2,000
	Cash		$2,000
	(To record the payment to credit accounts)
9/15.	Accounts Payable	$400
	Interest Expense	$100
	Cash		$500
	(To record the payment made for credit accounts with interest)
10/1.	Cash	$5,000
	Accounts Receivable		$5,000
	(To record the collection of cash for the services provided)
10/1.	Accounts Payable	$300
	Interest Expense	$250
	Tax Expense	$450
	Cash		$1,000
	(To record the payment for mortgage with interest and tax)
10/5.	Cash	$1,360
	Sales Revenue		$1,360
	(To record the services provided for cash)
	Cost of Goods Sold	$350
	Inventory		$350
	(To record the cost of goods sold)
10/28.	Accounts Receivable	$3,500
	Sales Revenue		$1,500
	Service Revenue ($3,500 - $1,500)		$2,000
	(To record the service revenue and sales)
	Cost of Goods Sold	$300
	Inventory		$300
	(To record the cost of goods sold)
10/30.	Sales Tax Expense ($200 + $1,360 + $1,500 = $3,060*7/100)	$214.20
	Sales Tax Payable		$214.20
	(To record the sales tax payable)
10/30.	Depreciation Expense - Camera	$700
	Camera		$700
	(To record the depeciation on camera)
10/30.	Drawings	$2,500
	Cash		$2,500
	(To record the withdrew of cash from the business)