Ronnie Redd is a photographer starting a new photography business. On December 1, 2018, Ronnie decided to incorporate under the name Abington Campus Photography . Ronnie has hired you to provide accounting services for the company.

1) On December 1, Abington Campus Photography awarded Ronnie Redd 10,000 common stock for $42,000 in cash.

2) On December 1st, Abington Campus Photography purchased photographic equipment for $11,160 cash.

3) On December 1st, Abington Campus Photography prepaid $2,500 for the first 2 months of rent for the photography studio. Company policy is to initially record prepaid expenses and unearned income in the balance sheet accounts.

4) · On December 4, Abington Campus Photography received a $3,200 deposit (partial payment) from Kim Jong and Vince Molinari for their June wedding. Company policy is to initially record prepaid expenses and unearned income in the balance sheet accounts.

5) · On December 9, Abington Campus Photography received $2,880 cash in full payment from Edward Taylor for a photo shoot in late December.

6) · Purchased $1,960 of photographic material for Abington Campus Photography on December 12.

7) · On December 15, Abington Campus Photography provided photography services for a local church and billed the client $12,800.

8) · On December 18, Abington Campus Photography received its $1,960 utility bill (utilities). Payment will be made on January 18.

9) · Paid $800 to Abington Campus Photography account on December 28th.

10) · On December 30, Abington Campus Photography paid a staff assistant salary of $1,200 for the month of December.

11) · On December 30, Abington Campus Photography paid out a cash dividend of $1,500.

12) · On December 30, Abington Campus Photography paid out a cash dividend of $1,500.

Required

 Prepare journal entries to record transactions for the first month in the business

Prepare the necessary correction entry for the lease expired in December.

Prepare the right entry to record the proceeds from Edward Taylor's photo shoot. Taylor paid $2,880 upfront on December 9, and the service was completed at the end of December.

 Physical count of photo supplies shows $390 supplies ready as of December 31. Prepare the necessary correction entry, if any.

 Prepare the entry to close the income account(s) to the Income summary.

 Prepare the entry to close the Expense account(s) to the Income summary.

 Prepare the entry to close the income summary

Prepare the entry to close the dividend account.