Question

In: Accounting

What accounts do I credit and debit? On December 1, Photography issued 10,000 shares of common...

What accounts do I credit and debit?

On December 1, Photography issued 10,000 shares of common stock to john in exchange for $40,000 cash

On December 1, Photography purchased photography equipment for $7,560 cash

On December 1, Photography prepaid $2,300 for the first 2 month's rent for their photography studio. The company's policy is to initially record prepaid expenses and unearned revenues in balance sheet accounts

On December 4, Photography received a $4,200 deposit (partial payment) from john for their June wedding. The company's policy is to initially record prepaid expenses and unearned revenues in balance sheet accounts

On December 9, Photography received $2,160 cash for full payment in advance from john for a late December photo shoot

On December 12, Photography purchased $1,680 of photography supplies on account

On December 15, Photography performed photography services for a local church and billed the client $8,800

On December 18, Photography received its electric bill (utilities) in the amount of $1,680. Payment is due on January 18

On December 28, Photography paid $700 on account

On December 30, Photography paid $1,450 in staff assistant's salary for December

On December 30, Photography paid a $1,300 cash dividend

Information for adjusting entries: The photography equipment purchased on December 1 has an estimated useful of of 3 years and no residual value. Prepare the adjusting entry to record depreciation for the month of December

Prepare the adjusting entry required for rent expired during December

Prepare the adjusting entry to record revenue earned from the photo shoot for Edward Taylor. Taylor paid $2,160 in advance on December 9, and the service was completed late in December

A physical count of photography supplies indicate that $340 of supplies are on hand as of December 31. Prepare the required adjusting entry, if any

Expert Solution

Date	General Journal	Debit	Credit

Dec-01	Cash	40000
	common stock		40000

Dec-01	Equipment	7560
	cash		7560

Dec-01	Prepaid rent	2300
	cash		2300

Dec-04	Cash	4200
	unearned revenue		4200

Dec-09	Cash	2160
	unearned revenue		2160

Dec-12	Supplies	1680
	Accounts payable		1680

Dec-15	Accounts receivable	8800
	service revenue		8800

Dec-18	Utilities expenses	1680
	Utilities payable		1680

Dec-28	Accounts payable	700
	cash		700

Dec-30	Salaries expense	1450
	cash		1450

Dec-30	Dividends	1300
	cash		1300

Adjusting entries

a.	Depreciation expense	210
	Accumulated depreciaition		210
	(7560)/3 years *1/12

b	Rent expense	1150
	prepaid rent		1150
	(2300/2)

c	Unearned revenue	2160
	service revenue		2160

d	Supplies expense	1340
	supplies		1340
	(1680-340)

ekkarill92 answered 2 years ago

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