Trial Balance and Adjusting Entries Photomake, Inc., a commercial photography studio, hasjust 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 l$2,150 Accounts Payable l$1,910 Accounts Receivable l 3,800 Unearned Photography Fees l 2,600 Prepaid Rent l 12,600 Common Stock l24,000 Prepaid Insurance l 2,970 Photography Fees Earned l34,480 Supplles l 4,250 Wages Expense l11,000 Equipment |22,800 Utilities Expense I 3,420 An analysis of the rm's records discloses the following items: 1. Photography services of $925 have been rendered, but customers have not yet been billed. The firm uses the account Fees Receivable to reect amounts due but not yet billed. 2. The equipment, purchasedjanuary 1, has an estimated life of 10 years. 3. Utilities expense for December is estimated to be $400 but the bill will not arrive untilJanuary of next year. 4. The balance in Prepaid Rent represents the amount paid on January 1, for a 2 year lease on the studio. 5. In November, customers paid $2,600 in advance for pictures to be taken for 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 $1,520. 8. At December 31, wages expense of $375 has been incurred but not paid. Required a. Prove that the sum of the debits equals the sum of the credits for Photomake's unadjusted account balances by preparing an unadjusted trail balance as of December 31. PHOTOMAKE, Inc. Unadjusted Trial Balance December 31 Debit Credit Cash $ 0 $ Accounts Receivable 0 0 Prepaid Rent o Prepaid Insurance Supplies Equipment o o o O O O 0 0 o Accounts Payable 0 Unearned Photography Fees Common Stock Photography Fees Earned Wages Expense Utilities Expense Totals 0 $ o 0 b. Record adjusting entries in the general journal. General Journa Date Description Ref. Debit Credit Dec. 31 (1) 0 $ 0 O 0 To record revenue earned but not billed. 31 (2 0 0 O O To record depreciation for the year. 31 (3) 0 0 o To record estimated December utilities expense. 31 (4 0 O O 0 To record rent expense for the year. 31 (5) O O O 0 To record advance payments earned during the year. 31 (6 0 To record insurance expense for the year. o o 31 (7 0 O 0 To record supplies expense for the year. 31 (8 0 0 O To record unpaid wages at December 31