Description of this paper

Jim Arnold's Photography Studio - Comprehensive Problem on pg 213




Question;Comprehensive Problem I (Intro to manual accounting;and computerized accounting);Jim Arnold has been a photographer since his;graduation from high school several years ago.;On February 1, 2011, he decided to open his own photography firm called;Arnold?s Photos. To start his accounting;system, Jim developed the chart of accounts shown below.;Arnold?s;Photo Studio. Chart of Accounts;ASSETS;111 Cash;OWNER?S EQUITY;311 Jim Arnold, Capital;112 Accounts Receivable;312 Jim Arnold, Drawing;113 Office Supplies;313 Income Summary;114;Photography supplies;115;Prepaid Insurance;REVENUE;121 Office Equipment;411 Photography Revenue;121.1;Accumulated Depreciation- Office Equipment;412 Vending Machine Revenue;122 Photography Equipment;EXPENSES;122.1;Accumulated Depreciation-Photography Equipment;511;Salaries Expenses;123 Furniture Fixtures;512 Advertising Expenses;123.1;Accumulated Depreciation- Furniture and Fixtures;513 Rent Expense;514 Repairs Expense;LIABILITIES;515 Insurance Expense;211 Accounts Payable;516 Office Supplies Expense;212 Notes Payable;517 Photography Supplies Expense;213 Salaries Payable;518 Depreciation Expense- Office Equipment;519 Depreciation Expense- Photography;Equipment;520 Depreciation Expense- Furniture and;Fixtures;521 Utilities Expense;522 Miscellaneous Expense;Jim completed the following transaction during the;first month of operations;February 2011;1 Jim;invested $40,000 cash and photography equipment valued at $20,000 in the;business;1 Purchased office;supplies for cash, $1,300.;1 Purchased;photography supplies on account, 6,700.;1 Paid rent;$1,700.;1 Paid for a;newspaper ad, $500.;2 Purchased office;equipment on account, $6,700.;2 Paid property;insurance for the upcoming year, $3,600.;3 Purchased a;computer a computer system and software, $3,200, by issuing a note payable.;5 Paid for;proportional handouts, $150.;6 Paid;miscellaneous expenses, $175.;7 Paid salaries of;employees, $1,400.;7 Recorded week?s;cash receipts for photo work, $10,350.;8 Paid for carpet;cleaning (a miscellaneous expense), $75;9 Recorded photo;work done for a customer on account, $1,885.;9 Purchased;additional photography supplies on account, $3,200.;10 Purchased;additional photography equipment;for cash, $3,500.;10 Entered into a;contract with Southside Food Vendors to place vending machines in the waiting;room. Jim is to receive 10% of all;sales, with a minimum of $200 monthly.;Received $200 as an advance payment.;11 Purchased;furniture for the lobby area, $1,700.;Paid cash in full.;12 Paid cash for the;installation of overhead lightning fixtures, $900.;15 Recorded second;week?s cash receipts for photo work, $12,170.;15 Paid second week;salaries, $1,400.;17 Jim withdrew cash;for personal use, $800.;18 Paid for a TV ad, 710.;19 Paid for repair;to equipment, $80;19 collected $500;for the photo work done on account on February 9;22 Recorded third;week?s cash receipts for photo work, $12,045.;22 Paid weekly;salaries, $1,400.;23 Did a special;wedding photo session for a customer on credit, $2,550;28 Recorded third;week?s cash receipts for photo work, $9,995.;28 Paid salaries of;employees, $1,400.;28 Paid water bill;for February, $70.;28 Paid electric bill;for February, $1,095.;28 Made a $500;payment on the note for the computer purchased on February 3.;28 Made a payment;for the office equipment purchased on account, $2,000.;28 Made a payment on;the photography supplies purchased on account, $1,000.;28 Wrote a business;check to pay for Jim?s home phone bill, $310.;28 Southside Food;Vendors reported a total of $2,800 of vending machine sales for February. Ten percent of these sales is $280. Since $200 has already been received and;recorded in February, Jim was owed $80.;Received the $80 check.;Directions;1. Open an account in;the ledger for each account shown in the chart of accounts.;2. Journalize each;of the transactions for February, beginning on page 1 of the general 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 work sheet.;5. Complete the;10-column work sheet. Assume for the;purposes of this problem that Jim has a one-month accounting period. Data for adjustments are as follow;a) Office supplies on hand $850;b) Photography supplies on hand $5,550;c) Insurance expired, $300.;D Salaries unpaid;two days of a five day week, weekly salaries are $1,400;E) Depreciation of office equipment $190;f) Depreciation of photography equipment $275;g) Depreciation of furniture and fixtures $75;6. Prepare an income;statement for the month ended on February 28;7. Prepare a;statement of owner?s equity for the month ended on February 28;8. Prepare a balance;sheet as of February 28.;9. Journalize;adjusting entries from the completed work sheet;10. Journalize;closing entries;11. Post adjusting and closing entries to the ledger;12. Prepare a post-closing trial balance.


Paper#53109 | Written in 18-Jul-2015

Price : $47