Trial Balance and Adjusting Entries Photomake, Inc., a commercial photography studio, has just completed its first full year of operations on December 31. The general ledger account balances before year-end adjustments follow. No adjusting entries have been made to the accounts at any time during the year. Assume that all balances are normal Cash $2,365 Accounts Payable $2,101 Accounts Receivable 4,180 Unearned Photography Fees 2,860 Prepaid Rent Prepaid Insurance Supplies Equipment 26,400 3,267 Photography Fees Earned 37,928 12,100 3,762 13,860 Common Stock 4,675 Wages Expense 25,080 Utilities Expense An analysis of the firm's records discloses the following items: 1. Photography services of $935 have been rendered, but customers have not yet been billed. The firm uses the account Fees Receivable to reflect amounts due but not yet billed. 2. The equipment, purchased January 1, has an estimated life of 10 years. 3. Utilities expense for December is estimated to be $440 but the bill will not 4. The balance in Prepaid Rent represents the amount paid on January 1, for a 2 5. In November, customers paid $2,860 in advance for pictures to be taken for arrive until January of next year. year lease on the studio. the holiday season. When received, these fees were credited to Unearned Photography Fees. By December 31, all fees are earned. 6. A 3 year insurance premium paid on January 1, was debited to Prepaid Insurance. 7. Supplies on hand at December 31 are $2,365 8. At December 31, wages expense of $413 has been incurred but not paid PHOTOMAKE, Inc. Unadjusted Trial Balance December 31 Debit Credit Cash Accounts Receivable Prepaid Rent Prepaid Insurance Supplies Equipment Accounts Payable 0 Unearned Photography Fees Common Stock Photography Fees Earned Wages Expense Utilities Expense Totals General Journal Date Description Ref. Debit Credit Dec. 31 To record revenue earned but not billed. 31 To record depreciation for the year. 31 To record estimated December utilities expense. 31 To record rent expense for the year 31 31 To record insurance expense for the year. 31 To record supplies expense for the year. 31 To record unpaid wages at December 31