Question

Q on 5 Not complete and out of 10.00P Gestion Preparing Accounting Adjustments Powall Photomake Company, a commercial photography studio, completed its first year of operations on December 31. Account balances before year-end adjustments follow no adjustments have been made to the accounts at any time during the year. Assume that all balances are normal 100 Accounts Payable 4,060 Accounts Receivable 3.800 Unearned Photographers 2.600 Prepaid Rent 12,600 Common 20.000 Prepaid insurance 2.570 Photography Tees Earned 34,450 supplies 4.250 We wente 11.000 Equipment 22.800 U s Expense 4.20 An analysis of the firm's records discloses the following business began on January 1) 1. Photography services of $1.850 have been rendered, but customers have not yet paid or been bited. The company uses the account Fees Receivable to reflect amounts due but not yet billed 2. Equioment, purchased january 1, has an estimated life of 10 years 3. U s expense for December is estimated to be 1400, but the bill wil notarive or be paid unt r y of next year. All por months'utilities will have been received and pads 4. The balance in Prepaid Rent represents the amount paid on January 1, for a year lease on the studio it operates from 5. in November customers paid $2,600 cash advance for photos to be taken for the holiday season. When received, these fees were credited to Unearned Photography By December, all of these fees are earned 6. A year insurance premium paid on January 1 was debted to prepaintance 7. Supplies available at December 31 are $1,020 8. Al December 31, wages expense of $375 has been incurred but not yet paid or recorded

Answer 1

Income Statement Transaction Cash Asset + Revenue + Expense = + + = = + Balance Sheet Non-Cash = Liabilities Assets $1,850 $0 $2,280 = $0 $0 = $400 $6,300 $0 $0 = -$2,600 $990 = $0 $3,230 = $0 $375 - - - - $0 $0 $0 $0 $0 $0 $0 + + + + + + + + Contributed Capital $1,850 $2,280 $400 $6,300 $2,600 $990 $3,230 $375 $1,850 $0 $0 $0 $2,600 $0 $0 $0 + + + + Net Income $1,850 $2,280 ($22,800 / 10 years] $400 $6,300 ($12,600 / 2 years] $2,600 $990 ($2,970 / 3 years] $3,230 ($4,250 - $1,020] -$375 $0 $2,280 $400 $6,300 $0 $990 $3,230 $375 - - - = = = = SO = + 2) Credit Debit $2,600 $2,600 $990 Transaction General Journal (1) Fees Receivable Photography Fees Earned (2) Depreciation Expense Accumulated Depreciation (3) Utilities Expense Utilities Payable (4) Rent Expense Prepaid Rent Debit Credit $1,850 $1,850 $2,280 $2,280 $400 $400 $6,300 $6,300 Transaction General Journal (5) Unearned Photography Fees Photography Fees Earned (6) Insurance Expense Prepaid Insurance (7) Supplies Expense Supplies (8) Wages Expense Wages Payable $990 $3,230 $3,230 $375 $375