Arnold's Photos Chart of Accounts Assets Owner's Equity 111 Cash 311 Jim Arnold, Capital 112 Accounts Receivable 312 Jim Arnold, Drawing 113 Office Supplies 313 Income Summary 114 Photography Supplies Revenue 115 Prepaid Insurance 411 Photography Revenue 121 Office Equipment 121.1 Accumulated Depreciation Office 412 Vending Machine Revenue Equipment Expenses 122 Photography Equipment 511 Salaries Expense 122.1 Accumulated Depreciation 512 Advertising Expense Photography Equipment 513 Rent Expense 123 Furniture and Fixtures 514 Repairs Expense 123.1 Accumulated Depreciation Furniture 515 Insurance Expense and Fixtures 516 Office Supplies Expense 517 Photography Supplies Expense Liabilities 518 Depreciation Expense-Office Equipment 211 Accounts Payable 519 Depreciation Expense-Photography 212 Notes Payable Equipment 213 Salaries Payable 520 Depreciation Expense-Furniture and Fixtures 521 Utilities Expense 522 Miscellaneous Expense Jim completed the following transactions during the first month of operations: 20X1 Jul. 1 Jim invested $40,000 cash and photography equipment valued at $20,000 in the business. 1 Purchased office supplies for cash, $1,300. 1 Purchased photography supplies on account, $6.700. 1 Paid July rent, $1,700. 1 Paid for a newspaper ad, $500. 2 Purchased office equipment on account, $6,750. 2 Paid property insurance for the upcoming year, $3,600. 3 Purchased a computer system and software, $3,200, by issuing a note payable. 5 Paid for promotional handouts, $150. 6 Paid miscellaneous expenses, $175. 7 Paid salaries of employees, $1,400. 7 Recorded week's cash receipts for photo work, $1,350. Jul. 8 Paid for carpet cleaning fa miscellaneous expense), $75. 9 Recorded photo work done for a customer on account, $855. 9 Purchased additional photography supplies on account, 53,200. 10 Purchased additional photography equipment for cash, $3,500. 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 of $200 monthly. Received $200 as an advance payment. 11 Purchased furniture for the lobby area, $1,700. Paid cash in full, 12 Paid cash for the inscallation of overhead lighting fixtures, $900. 15 Recorded second weck's cash receipts for photo work, $2,170. 15 Paid weekly salaries, $1,400. 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 week's cash receipts for photo work, $2,045. 22 Paid weekly salaries, $1,400. 23 Did a special wedding photo session for a customer on credit, $550. 28 Recorded fourth week's cash receipts for photo work, $1.995. 29 Paid salaries of employees, $1,400. 30 Paid water bill for July, $75. 30 Paid clectric bill for July, $1,095. 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, $2,000. 31 Made a payment on the photography supplies purchased on account, $1,000, 31 Wrote a business check to pay for Jim's home phone bill, $310. 31 Southsicle Food Vendors reported a total of $2,800 of vending machine 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. Directions: 1. Open an account in the ledger for cach 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 coluinns of a 10-column work sheet. 5. Complete the 10-column work shect. 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 land, $5,550. (c) Insurance expired, $300. (d) Salaries unpaid, two days of a five-day week; weekly salaries are $1,400. fe) Depreciation of office equipment, $190. (1) Depreciation of photography cquipment, $275. Depreciation of furniture and fixtures, $75. 6. Prepare an income statement for the month ended July 31. 7. Prepare a statement of owner's 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. OULUUNI ACCOUNT Accounts Receivable 112 MO DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT 2081 ALUU ACCOUNT Office Supplies DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT ACCOUNT Photography Supplies DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT AUUUUIUI ACCOUNT Prepaid Insurance DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT AUUUU ACCOUNT Office Equipment 1 21 DATE ITEM P .R. DEBIT CREDIT BALANCE DEBIT CREDIT ACCOUNT Accumulated Depreciation Office Equipment 121.1 DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT Jul ACCOUNT Photography Equipment 122 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT ACCOUNT Accumulated Depreciation-Photography AU ! 1221 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT ACCOUNT Furniture and Fixtures 123 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT ACCOUNT Accumulated Depreciation-Furniture and 123.1 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT 1. Jul. AUUUU ACCOUNT Accounts Payable 211 MO DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT ULUI ACCOUNT Notes Payable DATE ITEMP . RDEBIT CREDIT BALANCE DEBIT CREDIT 2001 LLUM ACCOUNT Salaries Payable 213 DATE 1 ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT Aud header ACCOUNT Jim Arnold, Capital 311 ITEM PR DEBIT CREDIT DATE 2009 BALANCE DEBIT CREDIT ACCOUNT Jim Arnold, Drawing DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT ACCOUNT Income Summary 313 DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT ACCOUNT Photography Revenue DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT 2011 ACCOUNT Vending Machine Revenue DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT Rud hedder ACCOUNT Salaries Expense AU ! 511 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT AUUUUU ACCOUNT Advertising Expense 512 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT ALLUVIVI ACCOUNT Rent Expense 513 DATE ITEM P.R. | DEBIT CREDIT BALANCE DEBIT CREDIT UVUVI ACCOUNT Repairs Expense DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT 201 UVUVI ACCOUNT Insurance Expense 515 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT UUUU ACCOUNT Office Supplies Expense 516 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT LUU ACCOUNT Photography Supplies Expense 517 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT ACCOUNT Depreciation Expense-Office Equipment I DATE ITEM - DEBIT PR. CREDIT BALANCE DEBIT CREDIT ACCOUNT Depreciation Expense-Photography Equipment DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT Jul AUUUUU ACCOUNT Depreciation Expense-Furniture and Fixtures DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT 2081 LUUU ACCOUNT Utilities Expense 521 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT ACCOUNT Miscellaneous Expense UUUU 522 DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT