20X1
JUL. 1.
Jim invested 40,000 cash and photography equipment valued at 20,000 in the
business
1
Purchased
office supplies for cash, 1300
1
Purchased
photography supplies on account, 6700
1
Paid
july rent, 1700
1
Paid
for a newspaper ad, 500
2
Purchased
office equipment on account, 6750
2
Paid
property insurance for the upcoming year, 3600
3
Purchased
a computer system and software, 3200, by issuing a note payable
5
Paid
for promotional handouts, 150
6
Paid
miscellaneous expenses, 175
7
Paid
salaries of employees, 1400
7
Recorded week’s cash receipts for photo work, 1350
8
Paid
for carpet cleaning (a miscellaneous expense), 75
9
Recorded
photo work done for a customer on account, 855
9Purchased
additional photography supplies on account, 3200
10
Purchased
additional photography equipment for cash, 3500
10 Entered into a contract with Southside Food
Vendors to place vending machines in the waiting room. Jim is to receive 10% of
all sales, with a minimum payment of 200 monthly. Received 200 as an advance
payment
11
Purchased
furniture for the lobby area, 1700. Paid cash in full
12
Paid
cash for the installation of overhead lighting fixtures, 900
15 recorded second week’s cash receipts for
photo work, 2170
15 Paid
weekly salaries, 1400
17 Jim
withdrew cash for personal use, 800
18 Paid
for TV ad, 710
19 Paid
for repair to equipment, 80
19
Collected 500 for the photo work done on account on July 9
22
Recorded third weeks cash receipts for photo work, 2045
22 Paid weekly salaries, 1400
23 Did a
special wedding photo session for a customer on credit, 550
28
Recorded fourth week’s cash receipts for photo work, 1995
29 Paid salaries of employees, 1400
30 Paid
water bill for July, 75
30 Paid
electric bill for July, 1095
31 Made
a 500 payment on the note for the computer purchased on July 3
31 Made
a payment for the office equipment purchased on account, 2000
31 Made a payment on the photography supplies
purchased on account, 1000
31 Wrote
a business check to pay for Jim’s home phone bill, 310
31
Southside Food Vendors reported a total of 2800 of vending machines sales for
July. Ten percent of these sales is 280. Since 200 had already been received
and recorded in July, Jim was owed 80. Received the 80 check
1.
Open
an account in the ledger for each account shown in the chart of accounts.
2.
Journalize
each of the transactions for July, beginning on page 1 of the general journal.
3.
Post
the journal entries to the ledger
4.
Prepare
a trial balance of the ledger in the first two columns of a 10-column work
sheet
5.
Complete
the 10-column work sheet. Assume for the purposes of this problem that Jim has
a one-month accounting period. Data for adjustments are as follows:
a.
Office
supplies on hand, 850
b.
Photography
supplies on hand, 5550
c.
Insurance
expired, 300
d.
Salaries
unpaid, two days of a five-day week, weekly salaries are 1400
e.
Depreciation
of office equipment, 190
f.
Depreciation
of photography equipment, 275
g.
Depreciation
of furniture and fixtures, 75
6.
Prepare
an income statement for the month ended July 31
7.
Prepare
a statement of owners equity for the month ended July 31
8.
Prepare
a balance sheet as of July 31
9.
Journalize
adjusting entries from the completed work sheet
10. Journalize closing entries
11. Post adjusting and closing
entries to the ledger
12. Prepare a post-closing trial
balance
TUTORIAL PREVIEW
Jim Arnold's Photography
Studio
|
General Journal
|
Page 1
|
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|
|
Date
|
Account Title
|
P.R.
|
Debit
|
Credit
|
|
|||
|
1
|
20X1
Jul. |
1
|
Cash
|
111
|
40,000
|
|
1
|
||
|
2
|
|
|
Photography equipment
|
122
|
20,000
|
|
2
|
||
|
3
|
|
|
|
Jim Arnold, Capital
|
311
|
|
60,000
|
3
|
|
|
4
|
|
|
|
|
Invested cash and photography equipment.
|
|
|
|
4
|
File
name: CRPI-solution.xls
File type: xls Price: 40
