Jim Arnold's Photography Studio P) O bave reached the end of the first section of this book. The following problem is to review and reinforce your knowledge of accounting for a service business. lim Arnold has been a photographer since his graduation from high school several On July 1, 20x1, he decided to open his own photography firm, called ycars ago. C Amold's Photos. To start his accounting system, Jim developed the chart of accounts owm below Arnold's Photos Chart of Accounts Owner's Equity 311 Jim Amold, Capital 312 Jim Arnold, Drawing 313 Income Summary 111 Cash 12 Accounts Receivable 113 Office Supplies 114 Photography Supplies 115 Prepaid Insurance 21 Office Equipment 21.1 Accumulated Depreciation-Office Revenue 411 Photography Revenue 412 Vending Machine Revenue Equipment 122 Photography Equipment 21 Accumulated Depreciation- Expenses 511 Salaries Expense 512 Advertising Expense 513 Rent Expense 514 Repairs Expense Photography Equipment 23 Furniture and Fixtures reation-furniture and Fixtures 516 Office Supplies Expense 517 Photography Supplies Expense 518 Depreciation Expense Office Equipment 519 Depreciation Expense-Photography abilities Accounts Payable 2 Notes Payable 3 Salaries Payable Equipment 520 Depreciation Expense Furniture and 521 Utilities Expense 522 Miscellaneous Expense completed the following transactions during the first month of operations: 1 Jim invested $40,000 cash and photography equipment valued at $20,000 in the business. Purchased office supplies for cash, $1,300. Pardhad hogaphy supplies on account, $6.700 1 Paid for a newspaper ad, $500. 2 PPurchased office equipment on account, $6,750. Paid property insurance for the upcoming year, $3,600. Purchased a computer system and software, $3,200, by issuing a note payable. Paid for promotional handouts, $150. 6 Paid miscellaneous expenses, $175 7 Paid salaries of employees, $1,400 Recorded week's cash receipts for photo work, $1,350