Comprehensive Review Problem | Jim Arnold's Photography Studio You have reached the end of the first section of this book. The following problemit designed to review and reinforce your knowledge of accounting for a service business Jim Arnold has been a photographer since his graduation from high school several years ago. On July 1, 20x1, he decided to open bis own photography firm, called Arnold's Photos. To start his accounting syster, Jim developed the chart of accounts shown below. 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 115 Prepaid Insurance Reche 121 Office Equipment 411 Photography Revenue 121.1 Accumulated Depreciation Office 412 Vending Machine Revence Equipment Expenses 122 Photography Equipment 511 Sans Expense 122.1 Accumulated Depreciation 512 Advertising Expense Photography Equipment 513 Reet Expense 123 Furniture and Fores 514 Repairs Expense 123.1 Accumulated Depreciation Furniture S15 Insurance Expense and Figures 516 Office Supplies Expertise Liabilities 517 Photography Supplies Expense 211 Accounts Payable 518 Depreciation Expensement 212 Notes Payable 519 Depreciation Berse-Photography 213 Sataries Payable Equipment 520 Unpreciation Experse-Furniture and Factures 521 Unities Expense 522 Meelitanus Expense Jin completed the following transactions during the fint month of aperations 20X1 Jul Jim invested $40,000 cash and photography equipment valued at $20,000 in the business 1 Purchased office supplies for cash. 51,300. 1 Purchased photography supplies on account. 56,700. 1 Paid July tent, $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 wurk. 51.350 213 Jul. Paid for complet deaning la miscellaneous expense). 575. 9 Rended photo work done for a customer on account, $855. 9 Purchased additional photography supplies on account 53.200 10 Purchased additional photography cquipment for cash. $3.500 10 Entered into a contract with Southside Food Vendon to place vending machines in the waiting room. Jim is to receive 10% of all alos, with a inimum of $200 monthly. Received $200 as an advance payment 11 Purchased furniture for the lobby area, $1,700. Paid cash in fuit 12 Paid cash for the installation of overhead lighting fixtures, 5900 15. Recorded second week's cash receipts for photo work. $2.170. IS Paid weekly salaries, $1,400 17 Jun wahdrew cash for personal use. $800. 18 Paid for TV ad. 5710. 19 Paid for repair to equipment. 880 19 Collected $500 for the photo work done on account on July 22 Recorded third week's cachoeipts for photo work, 52.065 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 recipes for picto work, 51.995. 29 Paid salaries of employees, $1,400. 30 Paid water bill for July. 575. 30 Paid clearic 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 $1.000. 31 Wrote a business check to pay for Jim's home phone bill. $310. 31 Southade Food Vendors reported a total of 52,800 of vending anachine ales for July, Ten percent of the sales is $280. Since $200 had already been received and recorded in July. Jie was ewed 80. Received the S80 ccck. Directions 1. Open an account in the lodger for each account shown in the chart of accounts 2. Journaliuc cach of the transactions for July, beginning on page 1 of the general journal 3. Pust the joumal entries to the ledger 4. Prepare a trial balance of the ledger in the first two columns of a 10-column work slice 5. Complete the 16 column worksheet. Assume for the purposes of this problem thae Jin has one month accounting period. Data for adjustments are as follows: a) Office supplies on land. $850. (b) Photograply supplies on land, 55.550. to Insurance expised, 5300 Ed) Salaries unpaid, we days of a five-day week, weekly buries 51,400. fe Depreciation of office equipment, 190 Depreciation of photography quipment, $275. (g) 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 worksheet. 10. Joumalie dosing entries. 11. Post wisting and closing entries to the ledige 12. Prepare a post-dosing crial balance. CRP Data Entry Cells Jim Arnold's Photography Studio 2. General Journal Page 1 Credit Date Account Title P.R Debit 1 20X Jul 2 3 4 2 3 4 5 5 6 6 7 8 8 9 9 30 10 11 12 11 12 13 13 15 14 15 16 16 17 17 18 18 19 19 20 20 21 22 21 22 23 23 24 24 25 26 27 25 26 27 28 29 30 28 29 30 31 31 32 Data Entry Cells CRPI 1., 3., 11. ACCOUNT Cash ACCOUNT NO. 111 DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT 2013 NE ACCOUNT Accounts Receivable ACCOUNT NO. 112 DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT 2011 N ACCOUNT Office Supplies ACCOUNT NO. 113 DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT 201 M ACCOUNT Photography Supplies ACCOUNT NO. 114 DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT 2011 ACCOUNT Prepaid Insurance ACCOUNT NO 115 DATE ITEM P.R DEBIT CREDIT BALANCE DEBIT CREDIT 2001 ACCOUNT Office Equipment ACCOUNT NO 121 DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT 20% M ACCOUNT Accumulated Depreciation Office Equipment ACCOUNT NO 121.1 DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT 2011 ACCOUNT Photography Equipment ACCOUNT NO. 122 DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT 2011 nat ardubichi ACCOUNT Accumulated Depreciation-Photography Equipment ACCOUNT NO. 122.1 DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT ACCOUNT Furniture and Fixtures ACCOUNT NO. 123 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT M ACCOUNT Accumulated Depreciation Furniture and Fixtures ACCOUNT NO. 123.1 DATE ITEM PR DEBT CREDIT BALANCE DEBIT CREDIT 201 Ru ACCOUNT Accounts Payable ACCOUNT NO 211 DATE ITEM P.R DEBIT CREDIT BALANCE DEBIT CREDIT 20 M ACCOUNT Notes Payable ACCOUNT NO. 212 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT 201 ACCOUNT Salaries Payable ACCOUNT NO. 213 DATE ITEM PR DEBT CREDIT BALANCE DEBIT CREDIT Part ! Paradigm Publishing. Inc. Comprehensive Review Problem! 200 ACCOUNT Jim Arnold, Capital ACCOUNT NO. 311 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT ME ACCOUNT Jim Arnold, Drawing ACCOUNT NO. 312 DATE ITEM P.R DEBIT CREDIT BALANCE DEBIT CREDIT 2001 ACCOUNT Income Summary ACCOUNT NO. 313 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT 2011 M ACCOUNT Photography Revenue ACCOUNT NO. 411 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT 21 ACCOUNT Vending Machine Revenue ACCOUNT NO. 412 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT 11111 200 ACCOUNT Jim Arnold, Capital ACCOUNT NO. 311 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT ME ACCOUNT Jim Arnold, Drawing ACCOUNT NO. 312 DATE ITEM P.R DEBIT CREDIT BALANCE DEBIT CREDIT 2001 ACCOUNT Income Summary ACCOUNT NO. 313 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT 2011 M ACCOUNT Photography Revenue ACCOUNT NO. 411 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT 21 ACCOUNT Vending Machine Revenue ACCOUNT NO. 412 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT 11111 2011 ACCOUNT Salaries Expense ACCOUNT NO 511 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT 20 M ACCOUNT Advertising Expense ACCOUNT NO 512 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT NI NA ACCOUNT Rent Expense ACCOUNT NO 513 DATE ITEM P.R DEBIT CREDIT BALANCE DEBIT CREDIT 201 M ACCOUNT Repairs Expense ACCOUNT NO. 514 DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT M ACCOUNT Insurance Expense ACCOUNT NO. 515 BALANCE RATE IT NEOT CONT Part! Paradigm Publishing, Inc. Comprehensive Review Problem us > WR .. DEBIT CREDIT 201 ACCOUNT Office Supplies Expense ACCOUNT NO 516 DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT 2013 M ACCOUNT Photography Supplies Expense ACCOUNT NO. 517 | DATE ITEM PR DEBIT CREDIT BALANCE DEBIT CREDIT ZONE ACCOUNT Depreciation Expense-Office Equipment ACCOUNT NO. 518 DATE ITEM P.R DEBIT CREDIT BALANCE DEBIT CREDIT 201 M ACCOUNT Depreciation Expense-Photography Equipment ACCOUNT NO. 519 DATE ITEM P.R DEBIT CREDIT BALANCE DEBIT CREDIT 200 NI ACCOUNT Depreciation Expense-Furniture and Fixtures ACCOUNT NO. 520 BALANCE DATE ITEM P.R DEBIT CREDIT DEBIT CREDIT ZONE ACCOUNT Utilities Expense ACCOUNT NO. 521 DATE ITEM P.R. DEBIT CREDIT BALANCE DEBIT CREDIT 201 ut ACCOUNT Miscellaneous Expense ACCOUNT NO. 522 BALANCE DATE ITEM P.R. DEBIT CREDIT DEBIT CREDIT 20 CRPI 4., 5. Data Entry Cells Arnold's Photos Work Sheet For Month Ended July 31, 20X1 Adjustments Adusted Trial Balance Debit Credit Debit Credit Trial Balance Income Statement Balance Sheet Account Title Debit Credit Debe Credit Detait Credit CPRI JData Entry Cells 6. Arnold's Photos Income Statement For Month Ended July 31, 20X1 Arnold's Photos Statement of Owner's Equity For Month Ended July 31, 20X1 B. 8 Arnold's Photos Balance Sheet July 31, 20X1 Assets B. 8 Arnold's Photos Balance Sheet July 31, 20X1 Assets CPRI Data Entry Cells * Enter data in cells as needed. . 12. Arnold's Photos Post-Closing Trial Balance July 31, 20x1 ACCOUNT TITLE DEBIT CREDIT