REVN03B Module 2 - FINANCIAL ACCOUNTING - MODULE 2 Book Value ($) Record these transactions directly in the following T accounts without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Accounts Payable; Notes Payable; Ken Jones, Capital; Professional Fees; Rent Expense; Salary Expense; Blueprint Expense; Automobile Expense; Miscellaneous Expense. For event photography, start with a couple of zoom lenses. Remember, the only difference between a pro photographer and an amateur is your ability to sell your pictures. Instructions 1. Prepare an unadjusted trial balance for Connie Young, Architect, as of October 31, 2019. It has an estimated residual value of 9,000 and an estimated life of five years. Fill g. Bought supplies for cash, 185, Ck. Journal Entries When thinking aboutthe equipment required to start yourphotography business, you need to consider your own needs. For long-exposure shots, get a remote shutter control, either wired or wireless, so you won't jostle the camera by pressing the shutter button. The note payable is due next July (short term). 1- the owner, A:Accounting equation of the business says that all assets of the business should be equal to total, Q:john began an Upholstery cleaning business on October 1,2020 and engaged in the WebTherefore, the journal entry is a two part entry as follows: Debit: Cost of goods sold (cost value) Credit: Inventory (cost value) Debit: Receivable / cash / bank (sales value) Credit: Sales (sales value) As you can see, the above journal ensures that the books are balanced and the gross profit earned is incorporated in the books correctly. Chapter 3: Journal entries Transaction analysis is a process that determines whether a particular business event has an economic effect on the assets, liabilities or equity of the business. Record the transactions in the T accounts. 3. 3001. e. Sold services for cash for the first half of the month, 6,927. f. Bought supplies for cash, 301, Ck. A car is an asset so the journal entry for it will be similar for the purchase-via-loan of other assets like workshop equipment. Enter the correct date: The first step is to date your journal entry. Since the business is no longer making these payments, an entry should be made in the credit card account in QB to reflect this. Since we only answer up to 3 sub-parts, well answer the first 3. Determine the net income or net loss for October. 5. Bought a truck from Kelly Motors for 26,329, paying 8,000 in cash and placing the balance on account, Ck. 15.Received cash for job completed, 8,950. Supplies on hand at July 31, 615. 3. Journal entry works on the double entry principle. Journal Entries There are a couple of ways tolook into new cameralenses and make sure youre buying the right ones. 3. a. Gervais deposited 25,000 in a bank account in the name of the business. No. No. Well, sometimes the best gifts come in the smallest of packages. No. Market value is $68,250 on December 31. Received a bill from GC Gas and Lube for gas and oil for the truck, 128 (Gas and Oil Expense). 504 (Utilities Expense). Journal entry to record the purchase of equipment It is also known as end of period adjustment. Q:Prepare adjusting journal entries, as needed, considering the account balances excerpted from the, A:Given information is: On October 1, 2019, Jay Pryor established an interior decorating business, Pioneer Designs. If Amy Ott also lends some money to the business, the entry will be to debit Cash and credit a Journal entry explanations may be omitted. The credit side of the entry would be equity as the asset has been transferred by the owner (assuming that she doesnt receive anything as consideration and it is not a lease or loan). Cash balance decreases by $1,500. The purchase price is 85,000, pays 25,000 cash and signs a note for the balance. 2015 Jan. 9. useful life = 5 years. Received a bill from GC Gas and Lube for gas and oil for the truck, 128. k. Sold catering services for cash for the remainder of the month, 2,649. l. Gervais withdrew cash for personal use, 1,550, Ck. Journal entry 3. A new staff account inadvertantly charged the full amount to expense. You are required to, A:Introduction: The company, A:Journal entry: Journal entry is a set of economic events which can be measured in monetary terms., Q:On June 1, 2019, Teofila Albay, Optometrist, established the Albay Eye Clinic. Insurance premiums expired during the year are 3,150. c. Depreciation of equipment during the year is 5,250. d. Depreciation of trucks during the year is 4,000. e. Wages accrued but not paid at January 31 are 900. 5. Prepare T accounts, using the account titles in (1). 2. WebThis is for a straight transfer of cash of $1,200 to from Best Boots to Designer Doors without a loan agreement and without interest; the business owner decides to repay it with $300 per month for 4 months. Q:Information on adjusting entries: (1) Music instruments were depreciated by straight-line method, A:Adjusting Journal Entries To do this, please follow these steps: In order to take 179 depreciation on an asset it has to be placed in service during the current tax year. . It has an estimated residual value of 16,000 and an estimated useful life of 10 years. In this case, perhaps you might want to look into a 50mm f/1.8 prime lens. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. No. Paid rent on office and equipment for the month, 3,600. c. Paid automobile expenses (including rental charge) for the month, 1,350, and miscellaneous expenses, 600. d. Purchased office supplies on account, 1,200. e. Earned sales commissions (revenue) from selling real estate, receiving cash, 19,800. f. Paid creditor on account, 750. g. Paid office salaries, 2,500. h. Withdrew cash for personal use, 3,500. i. Recorded depreciation on the truck for the fiscal year. The company plans to do a large spread, magazine advertisement on January 15, 2019. Prepare an income statement, a statement of owners equity (no additional investments were made during the year), and a balance sheet. Aug. James M. Wahlen, Jefferson P. Jones, Donald Pagach, Carl Warren, James M. Reeve, Jonathan Duchac, prepare an adjusted journal entries and adjusted trial balance 1. 1207. m. Paid wages to an employee, 1,200, Ck. Determine account balances of the T accounts. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). unrelated year-end, A:Adjusting entries are made by the management of the company for ensuring the accrual base accounting, Q:The following information relates to year-end adjusting entries as of December 31, 2021. This will need to be recorded as an asset so that it appears on your financial statement. adding information about your business, you will see the. WebFor passing the journal entries you must know the 3 golden rules of Accounting. The interest that has accrued on the loan is $1,850, but has not been paid or recorded as of December 21, 2018. 2001. c. Bought supplies for cash, 362, Ck. Whether this is paid in full or only partly paid, the journal is the same: The repayment of the expense loan by Designer Doors out of their bank account to Best Boots: Debit:Best Boots Loan Payable(liability account) Credit: Bank(assetaccount). What kind of transaction would I make in QuickBooks to show that the credit card balance to pay is now zero? This journal entry is prepared to record this transaction in the accounting records of the business. 2. No. Get the best equipment you can afford. Estimate your self-employment tax and eliminate any surprises. following. Paid the office rent for the current month, 650, Ck. (Record depreciation to date in 2015 for the truck.) Purchased supplies on account, 4,000. b. Journalize and post the closing entries. transferred The interest is to be collected on the maturity date. Once entered, the general journal provides a chronological *Response times may vary by subject and question complexity. During July, the company, A:For Closing entries , If you want any, Q:Oriole Clark opened Orioles Cleaning Service on July 1, 2020. His primary business is family portraiture, but he frequently travels to add to his ongoing Tattoos of Asia project. Recording gross proceeds from the sale of an asset as income. H. Determined that the cost of supplies on hand was 2,700; therefore, the cost of supplies used was 1,300. Paid dividends, 3,900. Briefly explain why issuing common stock and revenues increased stockholders equity, while dividends and expenses decreased stockholders equity. (d)Unexpired insurance on December 31, 1,750. A. Impairment loss ($) How much high ISO power do you really need? Insurance Journal Entry The following transactions, adjusting entries, and closing entries were completed by Legacy Furniture Co. during a three-year period. I understand how to remove the asset/accumulated depreciation accounts, but from there I am lost. T-accounts. A. Personal Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable, Rent Revenue, Insurance Expense, Depreciation ExpenseBuilding, Depreciation ExpenseEquipment, and Supplies Expense. Income and Expense A/C. Also, make sure you have a few spare cards in case anything goes wrong during a shoot. No. For each account listed in the unadjusted trial balance, enter the balance in the appropriate Balance column of a four-column account and place a check mark () in the Posting Reference column. Paid gas, oil, and repairs on automobile for April, 550. For example, on December 31, we dispose of 10 Analysis of Transaction. ADJUSTMENT FOR DEPRECIATION OF ASSET On July 1, delivery equipment was purchased for 4,320. I do my bookkeeping in QuickBooks. There are two different scenarios - you must chose one: My example is for a loan of $3,000 which was originally allocated to the Loan liability account. (The periodic inventory system is used.) If you're not taking low-light photos, there may be no reason to invest in a full-frame sensor yet. Service revenues earned but, A:There are three golden rules in accounting for recording the transaction : Prepare the adjusting entries in the general journal and complete the worksheet. 3 Paid two months rent deposit If you're just starting out as a portrait or wedding photographer, it's probably better to invest in a couple high-quality lenses and then get additional lenses as you start Professional cameras usually have full-frame sensors, while less expensive models have cropped sensors.
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