Need help with General Journal I cant figure out the amounts, tried the different methods I know still get the red x for incorrect. No.2 & 6 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 13,860 Common Stock 26,400 Prepaid Insurance 3,267 Photography Fees Earned 37,928 Supplies 4,675 Wages Expense 12,100 Equipment 25,080 Utilities Expense 3,762 An analysis of the firm's records discloses the following items: 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. The equipment, purchased January 1, has an estimated life of 10 years. Utilities expense for December is estimated to be $440 but the bill will not arrive until January of next year. The balance in Prepaid Rent represents the amount paid on January 1, for a 2 year lease on the studio. In November, customers paid $2,860 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. A 3 year insurance premium paid on January 1, was debited to Prepaid Insurance. Supplies on hand at December 31 are $2,365 At December 31, wages expense of $413 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 2365 0 Accounts Receivable 4180 0 Prepaid Rent 13860 0 Prepaid Insurance 3267 0 Supplies 4675 0 Equipment 25080 0 Accounts Payable 0 2101 Unearned Photography Fees 0 2860 Common Stock 0 26400 Photography Fees Earned 0 37928 Wages Expense 12100 0 Utilities Expense 3762 0 Totals 69289 69289 b. Record adjusting entries in the general journal. General Journal Date Description Ref. Debit Credit Dec.31 Fees Receivable (1) 935 0 0 935 To record revenue earned but not billed. DEC 31 Depreciation Expense (2) HELP?? 0 Accumulated Depreciation-Equipment 0 HELP?? To record depreciation for the year. DEC 31 Insurance Expense (6) HELP ?? 0 Prepaid Insurance 0 HELP?? To record insurance expense for the year.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Need help with General Journal I cant figure out the amounts, tried the different methods I know still get the red x for incorrect. No.2 & 6
| Cash | $2,365 | Accounts Payable | $2,101 | |
| 4,180 | Unearned Photography Fees | 2,860 | ||
| Prepaid Rent | 13,860 | Common Stock | 26,400 | |
| Prepaid Insurance | 3,267 | Photography Fees Earned | 37,928 | |
| Supplies | 4,675 | Wages Expense | 12,100 | |
| Equipment | 25,080 | Utilities Expense | 3,762 |
An analysis of the firm's records discloses the following items:
- 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.
- The equipment, purchased January 1, has an estimated life of 10 years.
- Utilities expense for December is estimated to be $440 but the bill will not arrive until January of next year.
- The balance in Prepaid Rent represents the amount paid on January 1, for a 2 year lease on the studio.
- In November, customers paid $2,860 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.
- A 3 year insurance premium paid on January 1, was debited to Prepaid Insurance.
- Supplies on hand at December 31 are $2,365
- At December 31, wages expense of $413 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 | 2365 | 0 |
||
| Accounts Receivable | 4180
|
0 |
||
| Prepaid Rent | 13860
|
0 |
||
| Prepaid Insurance | 3267
|
0 |
||
| Supplies | 4675
|
0 |
||
| Equipment |
25080
|
0 |
||
| Accounts Payable | 0 |
2101
|
||
| Unearned Photography Fees | 0 |
2860
|
||
| Common Stock | 0 |
26400
|
||
| Photography Fees Earned | 0 |
37928
|
||
| Wages Expense | 12100
|
0 |
||
| Utilities Expense | 3762
|
0 |
||
| Totals | 69289
|
69289
|
b. Record adjusting entries in the general journal.
| General Journal | |||||
|---|---|---|---|---|---|
| Date | Description | Ref. | Debit | Credit | |
| Dec.31 | Fees Receivable | (1) | 935 | 0
|
|
| |
0 | 935
|
|||
| To record revenue earned but not billed. | |||||
| DEC 31 |
(2)
|
HELP?? | 0
|
||
| 0 |
HELP??
|
||||
| To record depreciation for the year. | |||||
| DEC 31 | Insurance Expense | (6)
|
HELP ?? | 0 |
|
| Prepaid Insurance | 0 | HELP?? |
|||
| To record insurance expense for the year. | |||||
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
