A-1 Photography Accounting Practice
Accounting Transactions
Document 1
Document 1
A-1 Photography Interoffice Memorandum
To: Student Date: September 1, 2007
From: Phillip Browning
Subject: INITIAL INVESTMENT
Please record the following initial investment in A-1 Photography:
Cash $10,000
Photographic Equipment $50,000
Office Equipment $25,000
Vehicle $12,500
Enter $10,000 as a deposit in the checkbook.
Document 2
Interoffice Memorandum
To: Student
From: Phillip Browning
Date: September 1, 2007
Subject: Unearned Services
I received a check today for $6,000 from Providence Country Club to photograph events held at the club over the next 12 months.
Document 3
ATLANTIC INSURANCE, INC. Please detach and return with your payment
817 99 80 ATLANTIC INSURANCE, INC.
3918 Wilshire Blvd., Greensboro, NC 27405
TO ASSURE PROPER Premium Statement
CREDIT WRITE YOUR 02-25-2007 Annual Due
POLICY NUMBER ON Auto Policy No. Premium Date
YOUR PAYMENT
Annual Premium $2,400 817 99 80 $2,400 Receipt
Policy Coverage: 12 Months beginning Sept. 1 2007
APPROVED FOR PAYMENT A-1 PHOTOGRAPHY
9/1/07 P.B. $2,400 9000 Clare blvd.
Charlotte, NC 28002
Document 4
DOUGLAS REALTY 213 389-6014
1800 VEVERLY BLVD.
CHARLOTTE, NC 28002
Rent Amount Due A-1 PHOTOGRAPHY
9/1/07 to 12/31/07 $3,600 9000 Clare blvd.
Charlotte, NC 28002
APPROVED FOR PAYMENT
9/1/07 P.B.
Document 5
Darkroom Suppliers
Ace Camera 612 Wilshire Blvd., Charlotte, NC 28802 Invoice B 1068-3
213-852-2163
A-1 PHOTOGRAPHY
9000 Clare blvd. Terms: Net 30
Charlotte, NC 28002 Date: Sept. 5, 2007
Quantity Description Unit Price Total
10 quarts Developer $6.00 $60.00
2 dozen Film Drying Chip 12.00/dozen 24.00
36 rolls Film 5.00 180.00
Total 264.00
Document 6
Deposit Ticket
A-1 PHOTOGRAPHY 213-478-3584 CASH Currency 215.90
9000 Clare blvd. Coin 0.0
Charlotte, NC 28002 List checks Singly 140.50
250.60
Date Sept. 6, 2007 956.00
Total from other side 6000.00
Total 7563.00
Less cash received 0.0
Net Deposit 7563.00
Central National Bank
Box 1739 Terminal Annex
Charlotte, NC 28002
1 122000661 1400-083857 01362
Note: Document 6 includes $6000.00 deposit received and recorded in document 2. Therefore cash services provided in document 6 and not yet recorded amount to $1,563.
Document 7
COMPUTER SALES AND SERVICE
250 BLACKWELL STREET
CHARLOTTE, NC 28002
Date: Sept. 10, 2007
Terms: 30 days
Sold to: A-1 PHOTOGRAPHY
9000 Clare blvd.
Charlotte, NC 28002
Quantity Item Price Total
1 Fastway 300 System $4,000.00 $4000.00
Total Amount Due: $4,000.00
Note: Charge to Office Equipment
Document 8
P.O. 4172
San Diego, CA 91403
National Photography INVOICE
SUBS. SERVICE PERIOD NO. OF ISSUES LOW RATE YOU SAVE AMT. DUE
Sept. 1, 2006 to Aug. 31, 2007 12 $18.00 62% $18.00
APPROVED FOR PAYMENT
9/10/07 P.B.
Reply by date 9/15/2007
A-1 PHOTOGRAPHY
9000 Clare blvd.
Charlotte, NC 28002
2909 2MNT3 12488 DR105 2 069 00900 5 Charge to Miscellaneous Expenses P.B.
Document 9
A-1 PHOTOGRAPHY
9000 Clare blvd. Charlotte, NC 28002
CLIENT INVOICE
Date: 9/11/2007
Sold to: Jerri Wiles
9 Chiles Ave
Charlotte, NC 28002
Invoice No: 10
Service: Wedding pictures and video
Total amount due: $1500
All accounts are due and payable within 30 days.
Document 10
Deposit Ticket
A-1 PHOTOGRAPHY 213-478-3584 CASH Currency 405.60
9000 Clare blvd. Coin 0.0
Charlotte, NC 28002 List checks Singly 50.90
160.40
Date Sept. 11, 2007 220.30
Total from other side 450.80
Total 1288.00
Less cash received 0.0
Net Deposit 1288.00
Central National Bank
Box 1739 Terminal Annex
Charlotte, NC 28002
1 122000661 1400-083857 01362
Document 11
SAFEGUARD OIL COMPANY 245 DOHNEY St., Charlotte, NC 28802
Account No. 29306 213-389-6041
Gas and Oil Service, Sept. 12, 2007 Amount Due: $200.00
Approved for Payment
9/12/07 P.B.
Document 12
Interoffice Memorandum
To: Student
From: Phillip Browning
Date: September 12, 2007
Subject: Bank Loan
I have completed negotiations with Central National Bank to borrow $20,000. Prepare a journal entry to issue a 60 day, 10% note to the bank for that amount.
Document 13
Date: September 15, 2007 THE CHARLOTTE NEWS
Classified Department
1608 Sixth Street
Charlotte, NC 28802
TO: A-1 Photography
9000 Clare Blvd.
Charlotte, NC 28802
Description: Advertisement – 9/9/07 to 10/9/07
Amount Due: $350.00
APPROVED FOR PAYMENT
Document 14
A-1 PHOTOGRAPHY
9000 Clare blvd. Charlotte, NC 28002
Date: 9/18/2007
Sold to: Allied Energy, Inc.
325 Brooks Sreet
Charlotte, NC 28002
Invoice No: 15
Service: Photography- Annual Report
Total amount due: $2700
All accounts are due and payable within 30 days.
Document 15
Deposit Ticket
A-1 PHOTOGRAPHY 213-478-3584 CASH Currency 351.10
9000 Clare blvd. Coin 0.00
Charlotte, NC 28002 List checks Singly 50.60
49.50
Date Sept. 18, 2007 20.60
Total from other side 4700.20
Total 25,172.00
Less cash received 0.0
Net Deposit 25,172.00
Central National Bank
Box 1739 Terminal Annex
Charlotte, NC 28002
1 122000661 1400-083857 01362
NOTE: This deposit ticket includes the $20,000 from issuing the note payable to the Bank.
Document 16
Wholesale Office Supply, Inc.
500 Henderson Road
Charlotte, NC 28002
Date: Sept. 19, 2007
Terms: 30 days
Sold to: A-1 PHOTOGRAPHY
9000 Clare blvd.
Charlotte, NC 28002
Quantity Item Price Total
20 Laser paper $10.00 $200.00
2 Desk calendars $15.00 $30.00
Total Amount Due: $230.00
Document 17
Royal Maintenance
2318 Oak Street
Charlotte, NC 28002 Invoice NO. 9925-A
213-478-6912
Quality Workmanship Dependable Bonded
Cleaning Services Sept. 22, 2007 $100.00 Approved For Payment
Due Upon Receipt 9/22/07 P.B.
Document 18
Photographic Suppliers, Inc.
1300 Joel Ave.
Charlotte, NC 28002
Date: Sept. 22, 2007
Terms: 30 days
Sold to: A-1 PHOTOGRAPHY
9000 Clare blvd.
Charlotte, NC 28002
Quantity Item Price Total
1 Video camera $2900. $2900.
20 High speed film $30.00 $600.00
10 Developing paper $20.00 $200.00
Total Amount Due: $3700.00
Document 19
Interoffice Memorandum
To: Student
From: Phillip Browning
Date: September 25, 2007
Subject: Cash Withdrawal
Please issue me a check for $1,000.00
Document 20
Interoffice Memorandum
To: Student
From: Phillip Browning
Date: September 25, 2007
Subject: Land Purchase
Please make check for $7500 to King Developers, Inc. for a tract of land I purchased for a future office site.
Document 21
Deposit Ticket
A-1 PHOTOGRAPHY 213-478-3584 CASH Currency 250.90
9000 Clare blvd. Coin 0.00
Charlotte, NC 28002 List checks Singly 135.00
40.50
Date Sept. 25, 2007 600.20
Total from other side 2500.40
Total 4527.00
Less cash received 0.0
Net Deposit 4527.00
Central National Bank
Box 1739 Terminal Annex
Charlotte, NC 28002
1 122000661 1400-083857 01362
Document 22
Interoffice Memorandum
To: Student
From: Phillip Browning
Date: September 25, 2007
Subject: Bimonthly salaries
Please issue checks to employees for salaries for September 1-28 for a total of $3,500.00
Note: Make check out to “Payroll”
Document 23
Charlotte Department of Water and Power
Please keep above portion for your records.
When paying, mail this portion or bring entire bill to office.
Mail payments to P.O. box 1719, Charlotte, NC 28006
A-1 PHOTOGRAPHY 213-478-3584 This bill is subject to interest charges
9000 Clare blvd. on Oct. 15, 2007
Charlotte, NC 28002
Amount Paid if Different
Service
From 9/1/07 To 9/30/07 Approved For Payment
9/30/07 P.B.
PLEASE PAY THIS AMOUNT NOW DUE $275.00
412285000002400001302000000051534
Document 24
Interoffice Memorandum
To: Student
From: Phillip Browning
Date: September 30, 2007
Subject: Payment on account
Issue a check for $264 Darkroom Suppliers in payment of September 5, 2007.
Note: Refer to Document 5.
Document 25
Interoffice Memorandum
To: Student
From: Phillip Browning
Date: September 20, 2007
Subject: Adjusting entries
Please make the following adjustments on September 30, 2007.
A. Adjust unearned photographic service revenue for September. Assume photographic revenue is earned evenly over the entire year. (refer to Document 2)
B. Expired insurance (refer to Document 3)
C. Expired rent (refer to Document 4)
D. Photographic supplies on hand September 30, $315.00
E. Office Supplies on hand September 30, $125.00
F. Depreciation on photographic equipment for September, $400.00
G. Depreciation on office equipment for September , $250.00
H. Depreciation on vehicle for September $500.00
I. Salaries accrued on September 30,0$350.00
J. Accrue interest o note payable (refer to Document 12, use a 360-day year)
KEY FIGURES
1. Work sheet trial balance $148,180
2. Worksheet adjustments 4,054
3. Worksheet adjusted trial balance 149,780
4. Net income 9,253
5. Philip Browning, capital, Sept. 30, 2007 105,753
6. Total assets, Sept. 30, 2007 139,633
7. Post closing trial balance 140,783
File name: A-1-photography.xls File type: application/vnd.ms-excel Price: $20
To: Student Date: September 1, 2007
From: Phillip Browning
Subject: INITIAL INVESTMENT
Please record the following initial investment in A-1 Photography:
Cash $10,000
Photographic Equipment $50,000
Office Equipment $25,000
Vehicle $12,500
Enter $10,000 as a deposit in the checkbook.
Document 2
Interoffice Memorandum
To: Student
From: Phillip Browning
Date: September 1, 2007
Subject: Unearned Services
I received a check today for $6,000 from Providence Country Club to photograph events held at the club over the next 12 months.
Document 3
ATLANTIC INSURANCE, INC. Please detach and return with your payment
817 99 80 ATLANTIC INSURANCE, INC.
3918 Wilshire Blvd., Greensboro, NC 27405
TO ASSURE PROPER Premium Statement
CREDIT WRITE YOUR 02-25-2007 Annual Due
POLICY NUMBER ON Auto Policy No. Premium Date
YOUR PAYMENT
Annual Premium $2,400 817 99 80 $2,400 Receipt
Policy Coverage: 12 Months beginning Sept. 1 2007
APPROVED FOR PAYMENT A-1 PHOTOGRAPHY
9/1/07 P.B. $2,400 9000 Clare blvd.
Charlotte, NC 28002
Document 4
DOUGLAS REALTY 213 389-6014
1800 VEVERLY BLVD.
CHARLOTTE, NC 28002
Rent Amount Due A-1 PHOTOGRAPHY
9/1/07 to 12/31/07 $3,600 9000 Clare blvd.
Charlotte, NC 28002
APPROVED FOR PAYMENT
9/1/07 P.B.
Document 5
Darkroom Suppliers
Ace Camera 612 Wilshire Blvd., Charlotte, NC 28802 Invoice B 1068-3
213-852-2163
A-1 PHOTOGRAPHY
9000 Clare blvd. Terms: Net 30
Charlotte, NC 28002 Date: Sept. 5, 2007
Quantity Description Unit Price Total
10 quarts Developer $6.00 $60.00
2 dozen Film Drying Chip 12.00/dozen 24.00
36 rolls Film 5.00 180.00
Total 264.00
Document 6
Deposit Ticket
A-1 PHOTOGRAPHY 213-478-3584 CASH Currency 215.90
9000 Clare blvd. Coin 0.0
Charlotte, NC 28002 List checks Singly 140.50
250.60
Date Sept. 6, 2007 956.00
Total from other side 6000.00
Total 7563.00
Less cash received 0.0
Net Deposit 7563.00
Central National Bank
Box 1739 Terminal Annex
Charlotte, NC 28002
1 122000661 1400-083857 01362
Note: Document 6 includes $6000.00 deposit received and recorded in document 2. Therefore cash services provided in document 6 and not yet recorded amount to $1,563.
Document 7
COMPUTER SALES AND SERVICE
250 BLACKWELL STREET
CHARLOTTE, NC 28002
Date: Sept. 10, 2007
Terms: 30 days
Sold to: A-1 PHOTOGRAPHY
9000 Clare blvd.
Charlotte, NC 28002
Quantity Item Price Total
1 Fastway 300 System $4,000.00 $4000.00
Total Amount Due: $4,000.00
Note: Charge to Office Equipment
Document 8
P.O. 4172
San Diego, CA 91403
National Photography INVOICE
SUBS. SERVICE PERIOD NO. OF ISSUES LOW RATE YOU SAVE AMT. DUE
Sept. 1, 2006 to Aug. 31, 2007 12 $18.00 62% $18.00
APPROVED FOR PAYMENT
9/10/07 P.B.
Reply by date 9/15/2007
A-1 PHOTOGRAPHY
9000 Clare blvd.
Charlotte, NC 28002
2909 2MNT3 12488 DR105 2 069 00900 5 Charge to Miscellaneous Expenses P.B.
Document 9
A-1 PHOTOGRAPHY
9000 Clare blvd. Charlotte, NC 28002
CLIENT INVOICE
Date: 9/11/2007
Sold to: Jerri Wiles
9 Chiles Ave
Charlotte, NC 28002
Invoice No: 10
Service: Wedding pictures and video
Total amount due: $1500
All accounts are due and payable within 30 days.
Document 10
Deposit Ticket
A-1 PHOTOGRAPHY 213-478-3584 CASH Currency 405.60
9000 Clare blvd. Coin 0.0
Charlotte, NC 28002 List checks Singly 50.90
160.40
Date Sept. 11, 2007 220.30
Total from other side 450.80
Total 1288.00
Less cash received 0.0
Net Deposit 1288.00
Central National Bank
Box 1739 Terminal Annex
Charlotte, NC 28002
1 122000661 1400-083857 01362
Document 11
SAFEGUARD OIL COMPANY 245 DOHNEY St., Charlotte, NC 28802
Account No. 29306 213-389-6041
Gas and Oil Service, Sept. 12, 2007 Amount Due: $200.00
Approved for Payment
9/12/07 P.B.
Document 12
Interoffice Memorandum
To: Student
From: Phillip Browning
Date: September 12, 2007
Subject: Bank Loan
I have completed negotiations with Central National Bank to borrow $20,000. Prepare a journal entry to issue a 60 day, 10% note to the bank for that amount.
Document 13
Date: September 15, 2007 THE CHARLOTTE NEWS
Classified Department
1608 Sixth Street
Charlotte, NC 28802
TO: A-1 Photography
9000 Clare Blvd.
Charlotte, NC 28802
Description: Advertisement – 9/9/07 to 10/9/07
Amount Due: $350.00
APPROVED FOR PAYMENT
Document 14
A-1 PHOTOGRAPHY
9000 Clare blvd. Charlotte, NC 28002
Date: 9/18/2007
Sold to: Allied Energy, Inc.
325 Brooks Sreet
Charlotte, NC 28002
Invoice No: 15
Service: Photography- Annual Report
Total amount due: $2700
All accounts are due and payable within 30 days.
Document 15
Deposit Ticket
A-1 PHOTOGRAPHY 213-478-3584 CASH Currency 351.10
9000 Clare blvd. Coin 0.00
Charlotte, NC 28002 List checks Singly 50.60
49.50
Date Sept. 18, 2007 20.60
Total from other side 4700.20
Total 25,172.00
Less cash received 0.0
Net Deposit 25,172.00
Central National Bank
Box 1739 Terminal Annex
Charlotte, NC 28002
1 122000661 1400-083857 01362
NOTE: This deposit ticket includes the $20,000 from issuing the note payable to the Bank.
Document 16
Wholesale Office Supply, Inc.
500 Henderson Road
Charlotte, NC 28002
Date: Sept. 19, 2007
Terms: 30 days
Sold to: A-1 PHOTOGRAPHY
9000 Clare blvd.
Charlotte, NC 28002
Quantity Item Price Total
20 Laser paper $10.00 $200.00
2 Desk calendars $15.00 $30.00
Total Amount Due: $230.00
Document 17
Royal Maintenance
2318 Oak Street
Charlotte, NC 28002 Invoice NO. 9925-A
213-478-6912
Quality Workmanship Dependable Bonded
Cleaning Services Sept. 22, 2007 $100.00 Approved For Payment
Due Upon Receipt 9/22/07 P.B.
Document 18
Photographic Suppliers, Inc.
1300 Joel Ave.
Charlotte, NC 28002
Date: Sept. 22, 2007
Terms: 30 days
Sold to: A-1 PHOTOGRAPHY
9000 Clare blvd.
Charlotte, NC 28002
Quantity Item Price Total
1 Video camera $2900. $2900.
20 High speed film $30.00 $600.00
10 Developing paper $20.00 $200.00
Total Amount Due: $3700.00
Document 19
Interoffice Memorandum
To: Student
From: Phillip Browning
Date: September 25, 2007
Subject: Cash Withdrawal
Please issue me a check for $1,000.00
Document 20
Interoffice Memorandum
To: Student
From: Phillip Browning
Date: September 25, 2007
Subject: Land Purchase
Please make check for $7500 to King Developers, Inc. for a tract of land I purchased for a future office site.
Document 21
Deposit Ticket
A-1 PHOTOGRAPHY 213-478-3584 CASH Currency 250.90
9000 Clare blvd. Coin 0.00
Charlotte, NC 28002 List checks Singly 135.00
40.50
Date Sept. 25, 2007 600.20
Total from other side 2500.40
Total 4527.00
Less cash received 0.0
Net Deposit 4527.00
Central National Bank
Box 1739 Terminal Annex
Charlotte, NC 28002
1 122000661 1400-083857 01362
Document 22
Interoffice Memorandum
To: Student
From: Phillip Browning
Date: September 25, 2007
Subject: Bimonthly salaries
Please issue checks to employees for salaries for September 1-28 for a total of $3,500.00
Note: Make check out to “Payroll”
Document 23
Charlotte Department of Water and Power
Please keep above portion for your records.
When paying, mail this portion or bring entire bill to office.
Mail payments to P.O. box 1719, Charlotte, NC 28006
A-1 PHOTOGRAPHY 213-478-3584 This bill is subject to interest charges
9000 Clare blvd. on Oct. 15, 2007
Charlotte, NC 28002
Amount Paid if Different
Service
From 9/1/07 To 9/30/07 Approved For Payment
9/30/07 P.B.
PLEASE PAY THIS AMOUNT NOW DUE $275.00
412285000002400001302000000051534
Document 24
Interoffice Memorandum
To: Student
From: Phillip Browning
Date: September 30, 2007
Subject: Payment on account
Issue a check for $264 Darkroom Suppliers in payment of September 5, 2007.
Note: Refer to Document 5.
Document 25
Interoffice Memorandum
To: Student
From: Phillip Browning
Date: September 20, 2007
Subject: Adjusting entries
Please make the following adjustments on September 30, 2007.
A. Adjust unearned photographic service revenue for September. Assume photographic revenue is earned evenly over the entire year. (refer to Document 2)
B. Expired insurance (refer to Document 3)
C. Expired rent (refer to Document 4)
D. Photographic supplies on hand September 30, $315.00
E. Office Supplies on hand September 30, $125.00
F. Depreciation on photographic equipment for September, $400.00
G. Depreciation on office equipment for September , $250.00
H. Depreciation on vehicle for September $500.00
I. Salaries accrued on September 30,0$350.00
J. Accrue interest o note payable (refer to Document 12, use a 360-day year)
KEY FIGURES
1. Work sheet trial balance $148,180
2. Worksheet adjustments 4,054
3. Worksheet adjusted trial balance 149,780
4. Net income 9,253
5. Philip Browning, capital, Sept. 30, 2007 105,753
6. Total assets, Sept. 30, 2007 139,633
7. Post closing trial balance 140,783
File name: A-1-photography.xls File type: application/vnd.ms-excel Price: $20
