Insurance premiums expired during the year are 3,150. c. Depreciation of equipment during the year is 5,250. d. Depreciation of trucks during the year is 4,000. e. Wages accrued but not paid at January 31 are 900. Instructions 1. g. Bought supplies for cash, 185, Ck. An analysis of the company insurance policies indicates that the Prepaid Insurance account is to be reduced for 528 of expired insurance. Here the owner of the firm has invested his personal equipment into his business which from the business' point of view is an increase in assets and a capital Steps : Debit or Credit ? Dec. 31. 1004. j. When I first started my business, I had the Nikon equivalent of this kit; one body, two batteries, twomemory cards, a 35mm lens, a 50mm lens, an 85mm lens, a speedlight, and a computer. No. There is no bank account involved in this journal. 3. Prepare an income statement for April, a statement of owners equity for April, and a balance sheet as of April 30. Keeping one of these in an off-site location is a great idea. 3002. g. Bought insurance for the truck for the year, 1,200, Ck. Ken Jones, an architect, opened an office on April 1, 2019. However, even the best models won't always give you the same quality as a professional DSLR. Debit:Office Equipment(expense account) Credit: Best Boots Loan Payable(liabilityaccount). Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: 2. 1005. k. Wallace withdrew cash for personal use, 1,500, Ck. The journal entry would record a loss: (11) Mar. A new staff account inadvertantly charged the full amount to expense. The equipment has no salvage value. Simple Accounting equation is, A:Journal is the initial step in recording the financial transaction, date wise as per the dual entity, A:Note: Since we only answer up to 3 sub-parts, well answer the first 3. 3. Paid dividends, 3,900. When you're starting your own photography business, you will want to make sure you have the right equipment. A:Step 1 Later in your career, investing in the more exotic equipment on your wishlist can give you an edge in the industry but it is most likely not a good investment for you or yourbank accountif youre more entry-level. T-accounts. The following additional accounts from Recessive Interiors chart of accounts should be used: Wages Payable, 22; Depreciation ExpenseEquipment, 54; Supplies Expense, 55; Depreciation ExpenseTrucks, 56; Insurance Expense, 57. Received and paid the electric bill, 438, Ck. This free bookkeeping spreadsheet helps self-employed people track income and expenses from bank accounts, credit cards and cash and shows a summary report. View this solution and millions of others when you join today! Using the straight-line depreciation method, analyze the necessary adjusting entry as of July 31 (one month) using T accounts, and then formally enter this adjustment in the general journal. Dec. 3: The client immediately pays 8,000 for services to be performed at a later date. 2003. f. Sold professional services for cash, 4,600. g. Paid on account to Rehab Equipment Company, 700, Ck. 1202. e. Bought supplies on account from Wigginss Distributors, 535. f. Sold services for cash, 1,742. g. Bought insurance for one year, 1,375, Ck. I have machinery that I have acquired over the past few years before my business was officially formed. Paid rent on office and equipment for the month, 6,000. c. Purchased supplies on account, 3,200. d. Paid creditor on account, 1,750. e. Earned fees, receiving cash, 18,250. f. Paid automobile expenses (including rental charge) for month, 1,880, and miscellaneous expenses, 420. g. Paid office salaries, 5,000. h. Determined that the cost of supplies used was 1,400. i. 2015 Jan. 6. 1209. Depreciation of equipment for the year, 2,800. c. Accrued salaries and wages at July 31, 900. d. Unexpired insurance at July 31, 1,500. e. Fees earned but unbilled on July 31, 10,200. f. Supplies on hand at July 31, 615. g. Rent unearned at July 31, 300. No. month of November 2018,, A:Worksheet - Whether you have an Olympus, Sony or Panasonic, they will all record images. This journal entry is prepared to record this transaction in the accounting records of the business. Mirrorless cameras have a variety of sensors as well and are becoming more popular with pro photographers who need to travel light, including travel photographers and wedding photographers. No. Get the best equipment you can afford. Oct. 2. Adjusting entries at December 31, 2016. Record these transactions directly in the following T accounts without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Accounts Payable; Notes Payable; Ken Jones, Capital; Professional Fees; Rent Expense; Salary Expense; Blueprint Expense; Automobile Expense; Miscellaneous Expense. 2 The company paid $3,500 cash for an insurance policy covering the next 24 months. Depreciation was recorded on the truck using the, A:JOURNAL A ledger is an account that provides information on all the transactions that have taken place during a particular period. They use the percentage of sales method allowed by GAAP. Another way to look into camera lenses is to first decide the types of images you want to make. Supplies on hand at January 31 are 2,850. b. (f)Depreciation expense on the store equipment for 20--, 3,600. No. 8. 1002. h. Received and paid the bill for utilities, 340, Ck. 504. j. Even if youre not a studio photographer, you may need toinvest in a speed light, light stand or a reflector. 5. CREDIT Rent it and grabinstorepickup wherever possible until you know exactly the level of quality and power you will require. If the two totals are not equal, check the addition and subtraction. WebIn this journal entry, both total assets and total equity on the balance sheet of the company ABC increase by $50,000. Im planning on closing the business down in the near future which would include closing the business checking account as well. Required 1. Record the transactions in the T accounts. 30053007. m. Carter withdrew cash for personal use, 1,250, Ck. a. depreciation of the store, A:Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized, Q:The information necessary for preparing the 2021 year-end adjusting entries for Bearcat Personal. 13.Purchased equipment on account, 10,500. 6. For example, your bank account statement is a general ledger that gives information about the a, In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. Loans usually come with some kind of administration cost so this has been included in the journal. The note payable is due next July (short term). But, theres more to this than just delivering one job. A. supplies actual count at year end, $6,500 B. remaining unexpired insurance, $6,000 C. remaining unearned service revenue, $1,200 D. salaries owed to employees, $2,400 E. depreciation on property plant and equipment, $18,000. No. Debit:Designer Doors Loan Receivable(asset * account) Credit: Bank(assetaccount). 4. Digest. 2005. i. This handbook is a friend to help you reflect on why why you take photos, why photography is meaningful to you, and why creativity is important to you. 4. 5. Thanks Kristine for your help. WebBelow is the journal entry for prepaid expenses; According to the three types of accounts in accounting prepaid expense is a personal account. 1207. m. Paid wages to an employee, 1,200, Ck. Dec. 1: Paid 2,000 cash for an insurance policy covering the next 12 months. In fact, your phone probably has a better camera than what a good digital camera had to offer just 10 or 15 years ago. Determine the excess of revenues over expenses for October. Received P 72,000.00 cash advance from a customer for one year services to be rendered starting, A:AnnualDepreciation(straightlinemethod)=(Costoftheassets-Residualvalue)/Expectedlife, Q:Henry-K Company purchased a computer system for 21,600 on January 1, 2020. b. 4. In the books of Murphy Delivery Service Prepare a journal entry to record this transaction. Credit A:Required journal entries are given below: Q:The following transactions relates to Edwards Co for the month of January 2013. 7,500.00 Depreciation on the company's equipment for the year is computed to be $16,000. Start your trial now! Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance. This positioning clearly shows which account is debited and which is credited. It has an estimated residual value of 12,000 and an estimated useful life of eight years. Received invoice for blueprint service, due in May, 2,500. k. Recorded fees earned on plans delivered, payment to be received in May, 15,650. l. Paid salary of assistant, 2,800. m. Paid cash for miscellaneous expenses, 200. n. Paid 300 on note payable. 2 Paid two months' rent in advance for a studio, $900. When starting your business, something that needs to be taken quite seriously is whether you need the equipment youre looking at or want it. Worksheet Victoria Company has the following account balances on December 31, 2019, prior to any adjustments: Additional adjustment information: (a) depreciation on buildings, 1,100; on equipment, 600; (b) bad debts expense, 240; (c) interest accumulated but not paid: on note payable, 50; on mortgage payable, 530 (this interest is due during the next accounting period); (d) insurance expired, 175; (e) salaries accrued but not paid 370; (f) rent was collected in advance and the performance obligation is now satisfied, 800; (g) office supplies cm hand at year-end, 230 (expensed when originally purchased earlier in the year); and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2020. 1 Madison Harris, the, A:Solution: Prepare a post-closing trial balance. Determine the balances of the accounts affected by the adjusting entries and preparean adjusted trial balance. The delivery equipment has an estimated useful life of three years (36 months) and no salvage value. 5. WebMar. Sold the used truck for 15,000. 1208. n. Resser withdrew cash for personal use, 700, Ck. If you're using QuickBooks Online, here's how you can do it: Click the New or Plus sign ( +) button. Equipment is depreciated based on a 8-year life. Hello. There are plenty of services out there, so find one thats right for yourphotography businessand start getting your files into a third location. Prepare a trial balance as of July 31, 20--. Old vehicle: Original cost $243,70 screens, entering the requested information. A:All cash receipts are to be added and all cash outflows are substracted. Bought a truck from Kelly Motors for 26,329, paying 8,000 in cash and placing the balance on account, Ck. Post-Closing Trial Balance That will give you more options to control the depth of field. 503. h. Sold catering services on account, 4,307. i. Prepare an unadjusted trial balance for Connie Young, Architect, as of October 31, 2019. Green deposited 30,000 in a bank account in the name of the business. Purchased a new truck for 48,000, paying cash. Required 1. What is the Qualified Business Income (QBI) de Should I file my business and personal taxes t How do I enter a 1099-K in TurboTax Online? 2. 1,500.00 Learn more. Worksheet is a statement where all the ledgers are posted horizontally in the form of, Q:Architects completed the following transactions: Many photographers begin with the less expensive software and then upgrade to Photoshop if they find they need additional features, such as removing objects from an image. 3: The client immediately pays 8,000 for services to be performed at a later date.Dec. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers. Date var FIX=FIX||{}; A loan journal entry can be recorded in different ways in bookkeeping software, here are three of them: Contents:Bank LoansLoan Interest PayableCar LoansIntercompany loansLoan forgiveness. (Record depreciation to date in 2015 for the truck.) 1 1600 Machinery and Equipment 50,000 8200 Gains (Losses) on Sale of Capital Assets 1,000 1600 Machinery and Equipment 5,000 1000 Cash 46,000 Machinery and Equipment is credited for the book value of the old tractor and the credit to Cash for $46,000 is the amount of the purchase This type of cost is a deductible business expense. WebMadison Harris, the owner, invested $6.500 cash and $33.500 of. 2004. h. Received and paid the bill for utilities, 367, Ck. 2. 6,500.00, Q:At the end of its frst year, the trial balance of Pharoah Company shows Equipment $22,800 and zero, A:The adjusting entry for depreciation are as follows, Q:The ledger of Hammond Company, on March 31, 2012, includes these selected accounts before adjusting, A:Supplies expense = Supplies at the beginning - supplies on hand Debit. During July, the following. Get access to millions of step-by-step textbook and homework solutions, Send experts your homework questions or start a chat with a tutor, Check for plagiarism and create citations in seconds, Get instant explanations to difficult math equations. (e)Depreciation expense on the building for 20--, 4,000. BLOG CONTACT SITE MAP PRIVACY AFFILIATE DISCLOSURE DISCLAIMER, Copyright2011-2022 BEGINNER BOOKKEEPING All Rights Reserved. If, Q:After 5 years of operations Svensons tutoring clinic showed the following post-closing balances at, A:Hi student Gear may not be the most important thing in producing creative images, but it is necessary and you will need a certain amount of it. CAPITAL ACCOUNT CREDIT, Q:Mahdy Co. had the following transactions in the last two months of its year ended December 31., A:Adjusting entries are prepared at the end of the accounting period in order to ensure the accrual, Q:Following are the transactions for Valdez Services. Question: Prepare general journal entries for the following transactions of a new company called Pose-for-Pics.