That same inexperienced staff accountant had charged the full $4,200 to expense even though all of the supplies had not been used at December 31. Q:The following trial balance was extracted from the books of Columbus Ltd at December 31, the end of, A:Hey, since there are multiple requirements posted, we will answer the first three requirements. Particular 505. m. Paid the salary of the assistant, 1,150, Ck. Oct. 29. Record the transactions and the balance after each transaction 2. Computer. If you still cannot find the error, re-analyze each transaction. a. depreciation of the store, A:Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized, Q:The information necessary for preparing the 2021 year-end adjusting entries for Bearcat Personal. No. A journal entry is used to record a business transaction in the accounting records of a business. (Do not insert the account numbers in the journal at this time.) Required 1. Amount of total expenses recorded in the ledger. 2. Using AdobeLightroom, you can sort your entire catalog by focal length in the library module. Credit In July of this year, M. Wallace established a business called Wallace Realty. The equipment has no salvage value. Market value is $68,250 on December 31. No. Steps : Debit or Credit ? G. Paid office salaries, 2,500. 31.Withdrew cash for personal use, 3,500. No. 1005. k. Wallace withdrew cash for personal use, 1,500, Ck. No. 1 Madison Harris, the, A:Solution: Using the straight-line depreciation method, analyze the necessary adjusting entry as of December 31 (one month) using T accounts, and then formally enter this adjustment in the general journal. ADJUSTMENT FOR DEPRECIATION OF ASSET On July 1, delivery equipment was purchased for 4,320. Received a bill from GC Gas and Lube for gas and oil for the truck, 128 (Gas and Oil Expense). Instructions 1. Sold the used truck for 9,500. Q:Prepare the journal entries for the following transactions of a new Company called Pose for Pics. Connect with and learn from others in the QuickBooks Community. Identify the account affected when the transaction involves revenues or expenses. Scenario 2: offsetting the amount to Expenses. Connie Young, an architect, opened an office on October 1, 2019. Although your camera and your computer may come with free image processing software, and though there are less expensive options on the market, the standard is still Adobe's products, Lightroom and Photoshop. Paid the salary of the assistant, 1,150, Ck. After an inventory count at year end, the staff accountant noted that the inventory market value was lower than what was on the books (cost). 250,000, Q:Make a General Ledger for the (c)Supplies remaining at the end of the year, 2,400. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Debit:Designer Doors Loan Receivable(asset * account) Credit: Bank(assetaccount). Instructions 1. If your plan is to be a wildlife or sports photographer, you will need to invest in a good telephoto lens and monopod, which will often cost more than the camera itself. 1204. i. Depending on the type of ledger account the bookkeeping journal will increase or decrease the total value of each account category using the debit or credit process. Another way to look into camera lenses is to first decide the types of images you want to make. 6. I am having trouble figuring out how to complete the necessary journal entries to record the sale of a fixed asset (vehicle) that's outstanding loan was paid by the dealership, but had negative equity. 2. Purchased a used delivery truck for 24,000, paying cash. 8. A new staff account inadvertantly charged the full amount to expense. Transactions completed during the month follow. Mirrorless cameras have a variety of sensors as well and are becoming more popular with pro photographers who need to travel light, including travel photographers and wedding photographers. The journal entries would be: The entries could be separated as illustrated or it could be combined into one entry with a debit to cash for $125,000 ($100,000 from Sam and $25,000 from Ron) and the other debits and credits remaining as illustrated. b. Even if youre not a studio photographer, you may need toinvest in a speed light, light stand or a reflector. 3: Received 2,000 cash in photography fees earned previously.Dec. I am using this article by Stambaughness.Com for the basis of a PPP loan forgiveness, but these examples will work with most any type of loan forgiveness. The equipment has no salvage value. By clicking "Continue", you will leave the community and be taken to that site instead. Are you required to edit on site? Prepare a statement of owners equity for July 31, 20--. Looking to buy a new camera? Don't hesitate to reach out to us again. Purchased used automobile for 19,500, paying 2,500 cash and giving a note payable for the remainder. Step 2 Transferring office rent expense into income statement (profit and loss account). Can you think of any reason why the amount determined in (4) might not be the net income for October? Impairment loss ($) In fact, your phone probably has a better camera than what a good digital camera had to offer just 10 or 15 years ago. 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). The estimated useful life of the truck is four years, with a residual value of 5,000 for the truck. Explanations may be omitted. If you haven't already started Sorting your lens use inLightroomcan give you a great overall look at how you shoot. Adjusting Entries are the entries that make the accrual principle work for the, Q:The following information is available as of year-end Excel Applications for Accounting Principles, College Accounting (Book Only): A Career Approach. Extend the balances to the appropriate balance columns after each transaction is posted. Prepare an income statement, a statement of owners equity (no additional investments were made during the year), and a balance sheet. Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. How are you going to keep your clients files safe? Please resubmit the question and, Q:Katerina's Boutique is a business registered for GST and it lodges its Business Activity Statement, A:Introduction: Presented below is the unadjusted trial balance of the Moises Dondoyano Information But, theres more to this than just delivering one job. This way you can test different types, like wide angle, before making a financial commitment on theright toolsfor you. Journal entries follows double entry book keeping system which ensures that every, Q:The following transactions for the month of March have been journalized and posted to the proper. Determine the net income or net loss for April. Advertising was paid in advance on November 1, 2018. E Hello Community! This journal puts the printer into the Profit and Loss Report of Designer Doors but shows that it was paid for by Best Boots. Paid 5,000 on note payable. Record the transactions and the balance after each transaction. Enter the adjustments in the general journal. Opened a business bank account with a deposit of 24,000 from personal funds. Agoodcameraand camera lenses, of course, let you point and shoot. The difference between bank loans and vehicle loans is that: These car journal entries are for a vehicle costing $15,000 and for a loan of 5 years at 12% with fortnightly payments calculated using the same Loan Amortization template mentioned above. Because they don't have a mirror, these models are thinner and lighter than their DSLR cousins. c. Amount of net income for January. 4. No. Dec. 3: The client immediately pays 8,000 for services to be performed at a later date. I. WebEach accounting document is used to post a journal entry. First week only $4.99! Received a bill for gas and oil for the truck, 218. j. The interest that has accrued on the loan is $1,850, but has not been paid or recorded as of December 21, 2018. I understand how to remove the asset/accumulated depreciation accounts, but from there I am lost. No. Billed insurance companies for sales commissions earned, 12,500. Journals: 6,500.00, Q:At the end of its frst year, the trial balance of Pharoah Company shows Equipment $22,800 and zero, A:The adjusting entry for depreciation are as follows, Q:The ledger of Hammond Company, on March 31, 2012, includes these selected accounts before adjusting, A:Supplies expense = Supplies at the beginning - supplies on hand Calculation of depreciation: j. Apr. During the month, she completed the following transactions connected with her professional practice: a. Paid truck expenses, 435, Ck. The van cost $50,000 and your business paid cash for the van. Dec. 1: Paid 2,000 cash for an insurance policy covering the next 12 months. 1 1600 Machinery and Equipment 50,000 8200 Gains (Losses) on Sale of Capital Assets 1,000 1600 Machinery and Equipment 5,000 1000 Cash 46,000 Machinery and Equipment is credited for the book value of the old tractor and the credit to Cash for $46,000 is the amount of the purchase No. Nov. 2. (The periodic inventory system is used.) 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). Debit. (g)Unearned storage revenue as of December 31, 1,950. No. I have machinery that I have acquired over the past few years before my business was officially formed. (h)Wages earned but not paid as of December 31, 750. The company holds a 6,000, 12% (annual rate), 6 month note receivable dated September 30, from a customer. No. H. Determined that the cost of supplies on hand was 2,700; therefore, the cost of supplies used was 1,300. They will give you an invoice for the car and documents for the loan so you can get the information you need from those documents. Fill WebFigure 4.4 Journal Entry 1: Inventory Acquired on Credit Notice that the word inventory is physically on the left of the journal entry and the words accounts payable are indented to the right. 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 No. A journal entry is usually recorded in the general ledger; alternatively, it may be recorded in a subsidiary ledger that is then summarized and rolled forward into the general ledger. Account Titles When I first started my business, I had the Nikon equivalent of this kit; one body, two batteries, twomemory cards, a 35mm lens, a 50mm lens, an 85mm lens, a speedlight, and a computer. Record the closing entries on Page 27 of the journal. As you are starting yourphotography business, its a good idea to invest in quality camera accessories. His primary business is family portraiture, but he frequently travels to add to his ongoing Tattoos of Asia project. The purchase price is 85,000, pays 25,000 cash and signs a note for the balance. k. Received invoice for blueprint service, due in November, 2,890. l. Recorded fees earned on plans delivered, payment to be received in November, 18,300. m. Paid salary of assistants, 6,450. n. Paid gas, oil, and repairs on automobile for October, 1,020. If you are unable to get a schedule from the bank you may be able to see the amount of interest in the online bank transactions or off your loan statement for the current or previous months. A:Journal: Since you have posted multiple questions and not specified which question needs to be solved,, A:In this numerical has covered the concept of journal Entry, Ledger accounts , Trial Balance, Q:During the period January to December 2020 the company completed the following transactions:, A:Journal Entries As such, you should record the asset (trailer) and a balancing entry in 27.Paid miscellaneous expenses, 1,100. Received P 72,000.00 cash advance from a customer for one year services to be rendered starting, A:AnnualDepreciation(straightlinemethod)=(Costoftheassets-Residualvalue)/Expectedlife, Q:Henry-K Company purchased a computer system for 21,600 on January 1, 2020. Please resubmit the question, Q:These are the transactions of Magical Printing Press for the month of September 2021. I recommend choosing them carefully and renting them before you buy if that is an option. 2. Also, make sure you get a camera bag that is comfortable for the type and duration of shoots youll be doing. The sales team worked the last week in December, but will not be paid until January 5th. A. supplies actual count at year end, $6,500 B. remaining unexpired insurance, $6,000 C. remaining unearned service revenue, $1,200 D. salaries owed to employees, $2,400 E. depreciation on property plant and equipment, $18,000. The third journal adds the loan interest to the loan. This is to ensure its posted in the correct period. Record the adjusting entries on Page 26 of the journal. Bad debts expense is estimated to be 1% of annual sales. Instructions 1. Carl Warren, James M. Reeve, Jonathan Duchac. 2. Example 2: Another example: the owner of the company XZY invests a building which is evaluated to be $200,000 in the Hi Donna C. It's vital you're able to record your transaction the right way. To ensure accuracy in your books, I recommend contacting an accounting Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Recorded depreciation on the truck for the year. Since we only answer up to 3 sub-parts, well answer the first 3. (Record depreciation to date in 2015 for the truck.) Accounts containing only a single entry do not need a balance. Youre likely working with friends, a small local business, a local magazine, or another minor outlet that might be willing to give you the benefit of the doubt and provideword of mouthmarketing. 7. A business budget is a plan of expenses that a business estimates it will spend every month. An asset is fixed because it is an item that a business will not consume, sell or convert to cash within an accounting calendar year. Debit. Write the letter of each entry to identify the transaction. The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. During the month, Jay completed the following transactions related to the business: Oct. 1. Small things like cleaning supplies, straps, a tripod, and extra batteries can often be overlooked. 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. 2. Paid the office rent for the month, 1,800, Ck. At that point I would begin paying on the credit card with my personal checking account. 2005. i. Simple Accounting equation is, A:Journal is the initial step in recording the financial transaction, date wise as per the dual entity, A:Note: Since we only answer up to 3 sub-parts, well answer the first 3. Journalize and post the adjusting entries, inserting balances in the accounts affected. 17PA, Your question is solved by a Subject Matter Expert. (Record depreciation to date for 2016 for the truck.) 6. The bank may be able to provide a schedule listing all expected repayment dates and amounts for the life of the loan. 1002. h. Received and paid the bill for utilities, 340, Ck. No. When choosing the best camera and camera gear for you, decide on your needs and the needs of your idealpotential clients. Since you have posted a question with multiple sub-parts, we will solve first three sub-parts, Q:An auto-body repair shop has been in business for 23 years. Fees earned but unbilled on July 31, 10,200. Jay transferred cash from a personal bank account to an account to be used for the business, 18,000. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable, Rent Revenue, Insurance Expense, Depreciation ExpenseBuilding, Depreciation ExpenseEquipment, and Supplies Expense. WebPrepare general journal entries for the following transactions of a business called Photo by Lily for the month of December 2021: Dec. 1: The owner, invested 80,980 cash and Credit. Prepare an unadjusted trial balance as of January 31, 2019. Ifyou have already started Dec. 31. Determine account balances of the T accounts. Q:Leora Diamond began a professional practice on June 1 and plans to prepare financial statements at, A:Since we answer up to 3 sub-parts, we'll answer the first 3. PARTICULARS CREDIT Received and paid the heating bill, 248, Ck. Transactions completed during the month of July follow. Recorded depreciation on the remaining truck. Please resubmit the question, Q:Journalize the adjusting entries needed on December 31, 2019 for Rockman Industries using the, A:Adjusting entries are prepared by management to ensure the accrual basis accounting system.
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