Paid rent on office and equipment for the month, 6,000. c. Purchased supplies on account, 3,200. d. Paid creditor on account, 1,750. e. Earned fees, receiving cash, 18,250. f. Paid automobile expenses (including rental charge) for month, 1,880, and miscellaneous expenses, 420. g. Paid office salaries, 5,000. h. Determined that the cost of supplies used was 1,400. i. If you are looking to get a contract with a specific client or agency, ensure that your camera has the minimum megapixels or resolution your client requires. WebThe insurance journal entry for business owners is: Debit: Drawings (equity account) Credit: Cash/Bank (asset account) The above journal is only used when the business pays for the owners personal insurance out of the business bank account. The unadjusted trial balance of Recessive Interiors at January 31, 2019, the end of the year, follows: The data needed to determine year-end adjustments are as follows: a. month of November 2018,, A:Worksheet - Received and paid the heating bill, 248, Ck. Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded. Connie Young, an architect, opened an office on October 1, 2019. 3. Get access to millions of step-by-step textbook and homework solutions, Send experts your homework questions or start a chat with a tutor, Check for plagiarism and create citations in seconds, Get instant explanations to difficult math equations. The double-declining-balance method of depreciation is used. Journal is the part of book keeping. 1203. h. Paid on account to Ferber Equipment, 700, Ck. At that point I would begin paying on the credit card with my personal checking account. Sold the used truck for 9,500. 2015 Jan. 9. Journals: The asset would be debited as it has increased. 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. a. Pat completed the following transactions, A:Accounting equation may be defined as the equational form to represent the balance sheet in which, A:Increase in assets should be debited and decrease in assets should be credited. Account Titles No. Purchased a used delivery truck for 28,000, paying cash. Dec. 3: Received 2,000 cash in photography fees earned previously. When you get your first few jobs, it can be easy to fall into the trap of thinking that you can do this. Yes it does. Thank you 14.Purchased supplies for cash, 2,100. F. Paid automobile expenses for month, 1,150, and miscellaneous expenses, 300. Bought a truck from Kelly Motors for 26,329, paying 8,000 in cash and placing the balance on account, Ck. The bad debt expense is estimated to be $1,450. Q:Prepare adjusting journal entries, as needed, considering the account balances excerpted from the, A:Given information is: Determine the increase or decrease in owners equity for January. WebBelow is the journal entry for prepaid expenses; According to the three types of accounts in accounting prepaid expense is a personal account. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance. Office supplies on hand totaled $900. Enter the correct date: The first step is to date your journal entry. A:Prepare a trial balance for Randy Guttery, Landscape Consultant. Estimate your self-employment tax and eliminate any surprises. Carl Warren, James M. Reeve, Jonathan Duchac. They use the percentage of sales method allowed by GAAP. Digest. Adjusting Entries The following information is available for Drake Company, which adjusts and closes its accounts every December 31: 1. It was purchased on January 1, 2015. 2. Can you think of any reason why the amount determined in (4) might not be the net income for October? The company holds a 6,000, 12% (annual rate), 6 month note receivable dated September 30, from a customer. The van cost $50,000 and your business paid cash for the van. When we increase liabilities, we credit it. During August, the company, A:Hello. If you're using the Desktop version, here's how: We're right here if you have other questions. No. Additionally, you should consider investing in the following: The difference between a decent photo and a spectacular photo more often than not comes down to what you do with it on your computer. 6. Apr. 8. A. 8. The account headings are presented below. a. Wallace deposited 24,000 in a bank account in the name of the business. Even if youre not a studio photographer, you may need toinvest in a speed light, light stand or a reflector. Account Name 505. m. Paid the salary of the assistant, 1,150, Ck. Amount of total expenses recorded in the ledger. 2007. All of this equipment was purchased before the business was formed and over a period of multiple years. The purchase price is 85,000, pays 25,000 cash and signs a note for the balance. Ressers accountant listed the following chart of accounts: The following transactions were completed during July: a. Resser deposited 25,000 in a bank account in the name of the business. Credit: Cash $50,000.00. Also, make sure you get a camera bag that is comfortable for the type and duration of shoots youll be doing. 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). L.F. Prepare an unadjusted trial balance for Pioneer Designs as of October 31, 2019. Cash Consider yourpotential client. Sold the truck purchased January 9, 2015, for 36,000. Get your 12-week roadmap tolaunching aphotography business. After, A:Journal is a book where all the entries has been recorded in chronological order. Dec. 31. Old vehicle: Original cost $243,70 Required: 1. Sales total 65,000. 5 The company purchased Required 1. Briefly explain why issuing common stock and revenues increased stockholders equity, while dividends and expenses decreased stockholders equity. Market value is $68,250 on December 31. Sales Tax. The equipment has no salvage value. Depreciation of equipment for the year, 2,800. c. Accrued salaries and wages at July 31, 900. d. Unexpired insurance at July 31, 1,500. e. Fees earned but unbilled on July 31, 10,200. f. Supplies on hand at July 31, 615. g. Rent unearned at July 31, 300. Record the adjusting entries on Page 26 of the journal. Dec. 3: The client immediately pays 8,000 for services to be performed at a later date. During the month, he completed the following transactions connected with his professional practice: a. Journalize each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. Advertising was paid in advance on November 1, 2018. During the month, Jay completed the following transactions related to the business: Oct. 1. All the accounts will be transferred to Income summary . Q:Following are the transactions of a new company called Pose-for-Pics. Received and paid the electric bill, 438, Ck. b. Credit. Bad debts expense is estimated to be 1% of annual sales. Record the transactions and the balance after each transaction 2. Q:Prepare the journal entries for the following transactions of a new Company called Pose for Pics. [Journal Entry] [Notes] Debit: Decrease in equity Credit: Decrease in cash As with cameras, price usually dictates the quality. No. Feb. 28. Those Profoto B1s are excellent lights, but you may not need three of them just yet. Since the business is no longer making these payments, an entry should be made in the credit card account in QB to reflect this. 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 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. 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. 27.Paid miscellaneous expenses, 1,100. The straight linemethod is to be used. 1200. c. Paid the rent for the current month, 1,750, Ck. If one business is low on funds the owner might use funds from the other business bank account to pay bills due to stakeholders (vendors) or for other expenses. COMPLETION OF A WORK SHEET SHOWING A NET LOSS The trial balance for Cascade Bicycle Shop, a business owned by David Lamond, is shown below. 1 ADJUSTMENT FOR DEPRECIATION OF ASSET On December 1, delivery equipment was purchased for 7,200. 506. Theres a lot of debate in online forums as to whether a professional can use this camera or that camera. Depreciation, A:Adjusting entries: These entries are passed at the end of a particular accounting or financial year, Q:Safety-First Company completed all of its October 31, 2020, adjustments in preparation for preparing, Q:The information necessary for preparing the 2021 year-end adjusting entries for Winter Storage. 2. 3. The amount was $1,100. Unexpired insurance Tk. A fixed asset post code of blank. Salaries accrued but unpaid total 2,840 on December 31. Worksheet is a statement where all the ledgers are posted horizontally in the form of, Q:Architects completed the following transactions: The note payable is due next July (short term). Prepare an income statement, a statement of owners equity (no additional investments were made during the year), and a balance sheet. 4. Dec. 31. As a general rule, the more money you spend on a camera, the better quality it is. A journal entry is used to record a business transaction in the accounting records of a business. Dec. 31. Paid garage 675 for miscellaneous repairs to the truck. 6. Camera lenses are expensive, but they are also the pieces of equipment that will stay with you. 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). Likewise, there is no impact on the total assets of the balance sheet as the net book value of the fully depreciated equipment here is zero. 3. Select Journal entry. DEBIT b. The list of, Q:The following transactions took place in May 2021. WebPhoto Journal invites you to reflect on your photography, motivations, and dreams. Then you can reverse engineer them and decide roughly what focal lengths you might need. 9. How are you going to keep your clients files safe? Identify the account affected when the transaction involves revenues or expenses. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance. Following are the transactions of a new company called Pose-for-Pics. Ifyou have already started Maybe youre looking to shoot more dramatic portraits likewedding photographythat really bring your viewer close to the subject, perhaps a 24mm or 35mm would be more useful to you. Using AdobeLightroom, you can sort your entire catalog by focal length in the library module. 1208. n. Resser withdrew cash for personal use, 700, Ck. On July 1, K. Resser opened Ressers Business Services. 3004. i. Paid garage 250 to tune the engine and make other minor repairs on the used truck. 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. 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 g. Bought supplies for cash, 185, Ck. If you're using QuickBooks Online, here's how you can do it: You can also check this article for more information:Pay for business expenses with personal funds. Professional cameras usually have full-frame sensors, while less expensive models have cropped sensors. 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 You can have all the skills in the world, dozens of digital cameras and lens filters, but if you cant deliver the technical and aesthetic requirements of your client in a timely manner, you simply cannot run a sustainablefull-timeorpart-timephotography business. 4. The following transactions, adjusting entries, and closing entries were completed by Robinson Furniture Co. during a three-year period. 1. In July of this year, M. Wallace established a business called Wallace Realty. 503. h. Sold catering services on account, 4,307. i. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable, Rent Revenue, Insurance Expense, Depreciation ExpenseBuilding, Depreciation ExpenseEquipment, and Supplies Expense. Journalize and post the closing entries. No. Products, Track adding business information, continue through the screens to enter the Company using the, Q:The following accounts were taken from the trial balance of Cole Company as of December 31, 2015:, A:The adjusting entries are made at the year end to adjust the revenues and expenses of the current, Q:Prepare the necessary adjusting entries at December 31, 2016, for the Falwell Company for each of, A:Adjusting Entry:An adjusting entry is an accounting journal entry that converts a companys. Prepare T accounts, using the account titles in (1). Received and paid the heating bill, 248, Ck. The purchase price is 85,000, pays 25,000 cash and signs a note for the balance. b. . Median response time is 34 minutes for paid subscribers and may be longer for promotional offers. Foot the T accounts and show the balances. Systems, A:Note: 32,500 of photography equipment in the business. Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. 4. Recording of a business transactions in a chronological order. It solved my issue. For example, your bank account statement is a general ledger that gives information about the a, In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. No. If you want, Q:Compreh The accounting entries would be as follows: Debit: Van $50,000.00. 2. Choose it wisely and make sure you get the best tools for the job so that you can focus on whats really important: taking great pictures. l. Gervais withdrew cash for personal use, 1,550, Ck. 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. The pretax income of the company before adjustments is 18,270. Add the accounts listed in part (3) as needed. Bought a truck from Kelly Motors for 26,329, paying 8,000 in cash and placing the balance on account, Ck. On April 1, 2019, Maria Adams established Custom Realty. with the vehicle loan the money is usually paid directly to the car sales company so the business doesnt handle the money. Q:Journalize and post the closing entries to their respective T accounts. Green deposited 30,000 in a bank account in the name of the business. Instructions 1. Prepare a balance sheet as of July 31, 20--. A:A worksheet is a multi-column form used in financial statement preparation and adjustment. It covers the period from January 1, 2018 thru December 31, 2019. transferred to the business personal photography equipment journal entry Written by Posted in A journal entry may not be connected or related to a previous Paid on account to the City Crier, 455, Ck. Debit. These journals occur when two or more businesses are owned by the same owner/s. Transactions, Q:The following transactions of Atty. 9. Write the account totals from the left side of the equals sign and add them. No. Purchased a new truck for 54,000, paying cash. Journal entry explanations may be omitted. The 247 December utility bill arrived on December 31 and has not been paid or recorded. Journalize entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Accounts Payable; Sharon Matthews, Capital; Sharon Matthews, Drawing; Fees Earned; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. T-accounts. This is to ensure its posted in the correct period. Hi Spineback Accounts: A personal funding of a business expense results in an 'equity' posting. As such, you should record the asset (trailer) a To the left of each amount entered in the accounts, place the appropriate letter to identify the transaction. Light is our raw material, and thus should certainly be included in your list of photography equipment for starting yoursuccessfulphotography business. J. = 2800-800 15.Paid annual premiums on property and casualty insurance, 3,600. WebTo do this, please follow these steps: Click on the Business tab > Continue > I'll choose what to work on. In the end, a high-resolution full-frame DSLR camera is a beautiful machine, but is it the best tool for you? Instructions 1. Debit Required: Journalize the necessary year-end adjusting entries for Drake. The examples on this page are for both automatic journals involving the bank account and for manual entering of journals. Small things like cleaning supplies, straps, a tripod, and extra batteries can often be overlooked. WebThe journal entry would be: The journal entry shows that the company received computer equipment worth $1,200. During July, the following, A:1. Determine the excess of revenues over expenses for October. Premier investment & rental property taxes. Paid gas, oil, and repairs on automobile for April, 550. 2 The company paid $3,500 cash for an insurance policy covering the next 24 months. On January 2, 2020, when the, A:>Accounting principle states that the cost of the long term assets (like equipment) is to be, Q:to a., A:Closing entries: There are a couple of ways tolook into new cameralenses and make sure youre buying the right ones. A ledger is an account that provides information on all the transactions that have taken place during a particular period. a. On. For event photography, start with a couple of zoom lenses. Without any doubt, equipment is an important issue for starting a photography business. 4. Debit. No. Unless youve been doing this for some time already, I do not recommend investing heavily into lighting right away. 502. f. Sold catering services for cash for the first half of the month, 3,012. g. Bought supplies for cash, 185, Ck. 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 : Record the closing entries on Page 27 of the journal. Advertising was paid in advance on November 1, 2018. 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. 6. More important than the equipment is your knack for taking memorable photos or clean catalog images. Supplies on hand at July 31, 615. Record the transactions and the balance after each transaction. The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. 2. When starting your business, something that needs to be taken quite seriously is whether you need the equipment youre looking at or want it. 2015 Jan. 6. The organizations account headings are presented below. A review of travel expense reports indicates that 310 has been paid for airfare for a salesperson (and recorded as Travel Expenses), but has not yet been used. 504 (Utilities Expense). WebThe company purchased $12,000 equipment and paid in cash. WebRon is also going to transfer the $20,000 note on the automobile to the business. No. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers. All are related to the use of delivery equipment. You asked multiple questions, as per rule we will answer only one., A:Accounting Equation is foundation of Double entry Accounting System . 7,500.00 Paid the salary of the assistant, 1,150, Ck. 1004. j. Determine the following: a. Paid the office rent for the current month, 650, Ck. Credit. Q:Information on adjusting entries: (1) Music instruments were depreciated by straight-line method, A:Adjusting Journal Entries G. Paid office salaries, 2,500. Loans usually come with some kind of administration cost so this has been included in the journal. cost of equipment = 30000 WebExample #2. Start your trial now! 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. 8. Received a bill from GC Gas and Lube for gas and oil for the truck, 128 (Gas and Oil Expense). The fourth journal records a repayment of the loan. WebMar. Happy holidays! If you still cannot find the error, re-analyze each transaction. During the month, she completed the following transactions connected with her professional practice: a. No. Prepare a journal Property, Plant, and Equipment 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. If the two totals are not equal, check the addition and subtraction. 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. Market value is $68,250 on December 31. Sometimes, the owner might transfer a lump sum from one business to the other for the same purpose - there may be a loan agreement drawn up or there may not be. Since we only answer up to 3 sub-parts, well answer the first 3. a. 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). 7. Presented below is the unadjusted trial balance of the Moises Dondoyano Information Keep an eye on Craigslist for people selling their old equipment when they are upgrading or look to where professionals trade in their used equipment. (Record depreciation to date in 2015 for the truck.) Hi Spineback Accounts: A personal funding of a business expense results in an 'equity' posting. The company Buildings with a cost of 78,000, 25-year life, and 9,000 residual value are to be depreciated; equipment with a cost of 44,000, 8-year life, and 2,000 residual value is also to be depreciated. Please resubmit the question and, Q:Wunderkind Photography entered into the following transactions during February 2020. 3. 1209. Fill Is bookkeeping hard? Rent it and grabinstorepickup wherever possible until you know exactly the level of quality and power you will require. It has an estimated residual value of 9,000 and an estimated life of five years. a. This journal entry is prepared to record this transaction in the accounting records of the business. $40000 It has an estimated residual value of 12,000 and an estimated useful life of eight years. 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. 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. Worksheet Victoria Company has the following account balances on December 31, 2019, prior to any adjustments: Additional adjustment information: (a) depreciation on buildings, 1,100; on equipment, 600; (b) bad debts expense, 240; (c) interest accumulated but not paid: on note payable, 50; on mortgage payable, 530 (this interest is due during the next accounting period); (d) insurance expired, 175; (e) salaries accrued but not paid 370; (f) rent was collected in advance and the performance obligation is now satisfied, 800; (g) office supplies cm hand at year-end, 230 (expensed when originally purchased earlier in the year); and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2020. offsetting the loan to Expenses (which increases your profit by reducing expenses gradually over time). The income tax rate is 30% on current income and will be paid in the first quarter of next year. 2. transferred to the bussiness personal photography equipment valued at 129,000 asked by Kim September 2, 2022 Answer this Question Your Name Your Answer Still need help? This way you can test different types, like wide angle, before making a financial commitment on theright toolsfor you. Oct. 2. It involves two accounts: Prepaid Expense Account and the related Expense Account. 1201. d. Bought computers and copy machines from Ferber Equipment, 15,700, paying 4,000 in cash and placing the balance on account, Ck. No. Offset the new purchases and finance charges by showing an INCREASE in your Credit Card Liability account of the same amount, say $1,000. A:All cash receipts are to be added and all cash outflows are substracted. Transfer the account balances to a 10-column worksheet and prepare a trial balance. Debit 2. They are an advance payment for the business and therefore treated as an asset. Journalize and post the adjusting entries, inserting balances in the accounts affected. No. Received a bill from GC Gas and Lube for gas and oil for the truck, 128. k. Sold catering services for cash for the remainder of the month, 2,649. l. Gervais withdrew cash for personal use, 1,550, Ck. Book Value ($) Purchased used automobile for 19,500, paying 2,500 cash and giving a note payable for the remainder. No. E. Paid rent on office and equipment for the month, 5,000. How much did Marchs transactions increase or decrease stockholders equity? Using the straight-line depreciation method, analyze the necessary adjusting entry as of July 31 (one month) using T accounts, and then formally enter this adjustment in the general journal. However, which camera you choose depends on what kind of photography you are taking and your budget. Impairment, Q:a. In order torun a sustainablephotography business, itis importantto be able to deliver on time every time. WebThe first step in transferring journal entry amounts to ledger accounts involves A : writing in the journal the account number to which the credit amount was posted. Sold services on account, 3,603. k. Sold services for cash for the remainder of the month, 4,612. l. Paid wages to the employees, 3,958, Ck. Later in your career, investing in the more exotic equipment on your wishlist can give you an edge in the industry but it is most likely not a good investment for you or yourbank accountif youre more entry-level. WebBusiness Accounting prepare an adjusted journal entries and adjusted trial balance 1. k. Sold catering services for cash for the remainder of the month, 2,649 (Catering Income). 30.Paid wages of employees, 4,800. (Record depreciation to date for 2016 for the truck.) e. Bought insurance for the truck for one year, 400, Ck. If you don't have thousands of dollars to invest in equipment, there is nothing wrong with starting out small. No. There are plenty of services out there, so find one thats right for yourphotography businessand start getting your files into a third location. June 11. Bought tables and chairs for cash, 725, Ck. Webtransferred to the business personal photography equipment journal entry. 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. Journalize and post the closing entries. Debit. His primary business is family portraiture, but he frequently travels to add to his ongoing Tattoos of Asia project. Whenstarting yourownphotography business, there is some photography equipment that is necessary and some that can be postponed. Record the transactions and the balance after each transaction. For portraits, start with a zoom lens and a prime lens which has no zoom ability. Dec 1: Services are performed and clients are billed for 12,000. Entry 4: JCC then sells three pallets of concrete mix to a contractor.