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Cash $10,320 Accounts receivable 18,240 Prepaid software subscription contract 60,480 Prepaid insurance 14,256 Supplies 20,400 Equipment 109,440 Accounts payable 9,168 Performance obligations 12,480 Common
Cash $10,320 Accounts receivable 18,240 Prepaid software subscription contract 60,480 Prepaid insurance 14,256 Supplies 20,400 Equipment 109,440 Accounts payable 9,168 Performance obligations 12,480 Common stock 115,200 Photography fee revenue 165,504 Wages expense 52,800 Utilities expense 16,416 An analysis of the firm's records discloses the following: 1. Photography services of $4,440 have been rendered, but customers have not yet paid or been billed. The firm uses the account Fees Receivable to reflect amounts due but not yet billed. 2. Equipment, purchased January 1, has an estimated life of 10 years. 3. Utilities expense for December is estimated to be $1,920, but the bill will not arrive or be paid until January of next year. 4. The balance in Prepaid Software Subscription Contract represents the amount paid on January 1 for a 2-year contract for high-functioning photo editing software and its updates. 5. In November, customers paid $12,480 cash in advance for photos to be taken for the holiday season. When received, these fees were credited to Performance Obligations. By December 31, all of the services related to these fees had been performed. 6. A 3-year insurance premium paid on January 1 was debited to Prepaid Insurance. 7. Supplies available at December 31 are $7,296. 8. At December 31, wages expense of $1,800 has been incurred but not paid or recorded. a. Prove that debits equal credits for SnapShot's unadjusted account balances by preparing its Show Help unadjusted trial balance at December 31. b. Prepare its adjusting journal entries in journal entry form. c. Enter the beginning balances and post the adjusting entries to the T-accounts. Enter the adjustment amounts in the first available field in the debit or credit column.
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