Jim Arnold Project Comprehensive Review Problem 1

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General BIU - A Merge & Center $ % Font Alignment Numi x C DEF G H K General Journal Page 2 Date Account Title P.R. Debit Credit 20X1 7 Salaries Expense Jul. 1,400 1 Cash 1,400 2 3 7 Cash 1,350 4 Photograhy Revenue 1,350 5 6 8 Miscellaneous Expense 75 7 Cash 75 8 9 Accounts Receivable 855 10 Photography Revenue 855 11 12 9 Photography Supplies Accounts Payable 3,200 13 3,200 14 15 Photography Equipment Cash 10 3,500 16 7 3,500 17 18 Jim Arnold Part 1 Jim Arnold Part 2 Jim Arnold Part 3 Jim Arnold Part 4 Jim Arnole Type here to search Alignment X Repairs Expense C D G H K Data Entry Cells , 11. ACCOUNT Cash HLLWVIT 111 ANO BALANCE DATE ITEM P.R. DEBIT CREDIT DEBIT CREDIT 201 1 Cash 40,000 Jul. 1 Cash 1 Cash 1,300 1,700 1 Cash 2 Cash 5 Cash 500 3,600 150 6 Cash 175 7 Cash 1,400 7 Cash 1,350 8 Cash 10 Cash 75 3,500 10 Cash 11 Cash 12 Cash 200 1,700 900 15 Cash 2,170 15 Cash 1,400 Jim Arnold Part 1 Jim Arnold Part 2 Jim Arnold Part 3 Jim Arnold Part 4 Jim Arn Type here to search 5 6 Jim Amold Review Packet (1) 1) -Excel OSearch nsert Page Layout Formulas Review View Help Data A A Accounting e Wrap Text ri 11 A I U $ % 8 Conditional EE Merge & Center Formatting Fant Alignment Number C D G H 4., 5 Arnold's Photos Work Sheet For Month Ended July 31, 20x1 Trial Balance Adjustments Adji Account Title Credit Debit Debit Credit Jim Arnold Part 3 Jim Arnold Part 5 Jim Arnold Part 4 Jim Arnoid Part 1 Jim Arnold Part 2 111 e here to search 6 il Jim Amold Rev AutoSave File Page Layout Formulas Data Review View Help Home Insert X A A 11 Calibri Account Wrap Text Paste I -A BIU $ 2 Merge & Center Clipboard Font Alignment Na 22570 D47 A B C E 1 CPRI Data Entry Cells 2 6. Arnold's Photos Income Statement 6 For Month Ended July 31, 20X1 Revenues 7 Photography $ 8 8,965 9 Machine 280 10 Revenue 9,245 Expenses 11 12 Miscellaneou $ 250 13 Rent Expense 1,700 14 Repairs 80 15 Salaries 6,160 16 Utilities 2,070 17 Office 450 18 Photography 4,350 19 Insurance 300 20 Advertising Depreciation 1,360 21 190 22 Depriciation 75 Jim Arnold Part 1 Jim Arnold Part 2 Jim Amold Part 3 Jim Arnold Part 4 Jim A Type here to search I U Merge & Center $ % 8 Con Form Font Alignment Number Account Payable A B D G Add header 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 Salaries Payable Account Payable Jim Arnold Part 2 Jim Arnold Part 3 Jim Arnold Part 4 Jim Arnold Part 5 Type here to search Edge_8wekyb3d8bbwe/TempState/Downloa + Fit to p Jim Arnold's Photography Studio (P You have reached the end of the first section of this book. The following problem is designed to review and reinforce your knowledge of accounting for a service business. Jim Arnold has been a photographer since his graduacion from high school several years ago. On July 1, 20X1, he decided to open his own photography firnm, called Arnold's Photos. To start his accounting system, Jim developed the chart of accounts shown below. Arnold's Photos Chart of Accounts Assets Owner's Equity Jim Arnold, Capital Jim Arnold, Drawing Income Summary 111 Cash 311 112 Accounts Receivable Office Supplies Photography Supplies Prepaid Insurance Office Equipment 121.1 Accumulated Depreciation Equipment 312 113 313 114 Revenue 115 Photography Revenue Vending Machine Revenue 411 121 412 Office Expenses Photography Equipment 122.1 Accumulated Depreciation Photography Equipment Furniture and Fuxtures 122 511 Salaries Expense 512 Advertising Expense Rent Expense 513 123 514 Repairs Expense Insurance Expense Office Supplies Expense 123.1 Accumutated Depreciation Furnitura 515 and Fixtures 516 517 Photography Supplies Expense Liabilities Depreciation Expense-Office Equipment 518 Accounts Payable 211 Depreciation Expense Photography 519 Notes Payable Salaries Payable 212 Equipment 213 Photography Equipment 123 Forniture and Firtures 123.1 Accumulated Depreciation-Furniture and Fixtures 513 Rent Expense 514 Repairs Expense 515 Insurance Expense 516 Office Supplies Expense 517 Photography Supplies Expense 518 Depreciation Expense -Office Eq 519 Depreciation Expense Photograp Equipment 520 Depreciation Expense-Furniture Liabilities 211 Accounts Payable Notes Payable 212 Salaries Payable 213 Fixtures Utilities Expense 521 Miscellaneous Expense 522 Jim completed the following transactions during the first monch of operations: 20X1 Jim invested $40,000 cash and photography equipment valued at $20, the business 1 Purchased office supplies for cash, $1,300. 1 Purchased phoography supplies 1 Paid July rent, $1.700. Paid for a newspaper ad, $500 2 Purchased office equipment 2 Paid property insurance for the upcoming year. 53,600. 3 Purchased a computer system and software, $3.200, by issuing 5 Paid for promotional handouts, $150. 6 Paid miscellaneous expenses, $175 7 Paid salaries of employees, $1,400. 7 Recorded wcek's cash receipts for photo work, $1,350 Jul. on account, $6,700. on account, $6,750. a note pay + Fit to page Jul. 8 Paid for carpet cleaning (a miscellaneous expense), $75. 9 Recorded photo work done for a customer on account, $855. 9 Purchased additional photography supplies 10 Purchased addicional photography equipment for cash, $3,500 10 Entered into a contract with Southside Food Vendors to place vending machines in the waiting room. Jin is to receive 10% of all sales, with a minimum of $200 monthly. Received $200 as an advance payment. 11 Purchased furnicure for the lubby 12 Paid cash for the inscallation of overhead lighting fixtures, $900 15 Recorded second week'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. on account, $3,200. area, $1,700. Paid cash in full, 19 Paid for repair to equipment, $80 19 Collected $500 for the photo work done on account on 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 reccipts for photo work. $1,995. 29 Paid salarics of employces, $1,400. 30 Paid water bill for July, $75 30 Paid electric 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 acount. $2,000. 31 Made a payment on the photography supplies purchased 31 July 9 on account, $1,000 Wrote a business check to pay for Jim's home phone bill. $314 51 Southside Food Vendors reported a total of $2,800 of vendiing machine sales for July. Ten percent of these ales is $280. Since $200 had already been reLeived and tecorded in July, Jiin was owed $HO, Reieived he $80 check Directions: 1 Opcn 2. Journalizc cach of the transictions for July, heginning ut page fof ehe general journal. Past the juuirnal entrics to the ledger 4 Prepare a trial balance of the ledger in thbe first iwo colhiins of a 10olainn wark shect an account in the ledger for each account shown n the chait of acount. far the problem Pakd ancs Or Cimproycer 0 30 Paid water bill for July, $75. 30 Paid elecaricbill for July, $1,095. 31 Made a $500 paymen on the nuce for the computer purchased on July 31 Made a payment for the office equipment purchased 31 Made a payment on the photography supplies purchased on accounr, $1 31 Wrote a business check to pay for Jim's home phone bill, $310. 31 Southside Food Vendors reported a tocal of $2,800 of vending imachine 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 chech on account, $2,000 Directions 1. Open an account in the ledger for cach account shown in the chart of accounts 2. Journalize cach of the transactions for July, beginning 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 we sheet. on page 1 of the general 5. Complete the 10-column work shect. Assume for che purposes of this problem that Jim has a one-month accounting period. Data for adjustments are as follow (a) Office supplies (b) Photography supplies (c) Insurance expired, $300. (d) Salaries unpaid, le) Depreciation of oflice equipment, $190 () Depreciation of photography equipment, $275 () Depreciation of furniture and fixtures, $75. 6. Prepare on hand. $850. un hand. $5,550 days of a five-day week; weekly salaries are $1,400. IWo an income statement for the month ended July 31. 7. Prepare a statement of owner's equity for the monch ended July 31. 8. Prepare a balance sheet as of July 31, 9. Journalize adjusting entries from the completed work sheet t0. Journalize closing entries. 11. Post adjusting and closing entries to the ledger 12 Prepare a post-closing trial balance