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Make a General Journal from the information below 8/1 Sarah took out a mortgage with Sun...

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.

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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)
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