Question

General Journal tab:  Transactions 1-11: Prepare journal entries to record transactions for the first month in business. Transactions 12-15: Prepare the required adjusting entries (use information from the unadjusted trial balance to calculate the required adjustments). Transactions 16-19: Prepare the necessary closing entries.

On December 1, Altoona Campus Photography issued 10,000 shares of common stock to Anita Silver in exchange for $41,000 cash.

2On December 1, Altoona Campus Photography purchased photography equipment for $9,360 cash.

3On December 1, Altoona Campus Photography prepaid $2,400 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.

4On December 4, Altoona Campus Photography received a $4,400 deposit (partial payment) from Kim Jong and Vince Molinari for their June wedding. The company's policy is to initially record prepaid expenses and unearned revenues in balance sheet accounts.

5On December 9, Altoona Campus Photography received $2,520 cash for full payment in advance from Edward Taylor for a late December photo shoot.

6On December 12, Altoona Campus Photography purchased $1,820 of photography supplies on account.

7On December 15, Altoona Campus Photography performed photography services for a local church and billed the client $10,800.

8On December 18, Altoona Campus Photography received its electric bill (utilities) in the amount of $1,820. Payment is due on January 18.

9On December 28, Altoona Campus Photography paid $700 on account.

10On December 30, Altoona Campus Photography paid $1,400 in staff assistant's salary for December.

11On December 30, Altoona Campus Photography paid a $1,400 cash dividend.

12Information 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.

13Prepare the adjusting entry required for rent expired during December.

14Prepare the adjusting entry to record revenue earned from the photo shoot for Edward Taylor. Taylor paid $2,520 in advance on December 9, and the service was completed late in December.

15A physical count of photography supplies indicate that $360 of supplies are on hand as of December 31. Prepare the required adjusting entry, if any.

16Prepare the entry to close the revenue account(s) to Income summary.

17Prepare the entry to close the expense account(s) to Income summary.

18Prepare the entry to close income summary.

19Prepare the entry to close the dividends account.

Answer 1