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SnapShot Company Unadjusted Trial Balance December 31,2010 Debit Credit Cash $2,150

This question was answered on Jan 19, 2013. View the Answer

SnapShot Company
Unadjusted Trial Balance
December 31,2010
Debit Credit
Cash $2,150
Accounts Receivable 3,800
Prepaid Rent 12,600
Prepaid Insurance 2,970
Supplies 4,250
Equipment 22,800
Accounts payable $1,910
Unearned photo fees 2,600
Common stock 24,000
Photo fees earned 34,480
Wages Expense 11,000
Utilities Expense 3,420
Totals $62,990 $62,990

a. Photography services of $925 have been rendered, but customers have not yet paid or been billed. The firm uses the account Fees Receivable to reflect amounts due but not yet billed.

b. Equipment purchased Jan.1,2010 has an estimated life of 10 years.

c. Utilities expense for Dec. is estimated to be $400, but the bill will not arrive or be paid until Jan. of next year.

d. The balance in Prepaid rent represents the amount paid in Jan.1,2010, for a two year lease on the studio.

e. In Nov. customers paid $2,600 cash in advance for photos to be taken for the holiday season. When received these fees were credited to unearned photo fees. By Dec. 31, all of these fees are earned.

f. A 3-year insurance premium paid on Jan.1 2010 was debited to Prepaid insurance.

g. Supplies available at Dec. 31 are $1,520

h. At Dec.31, wages expense of $375 has been incurred but not paid or recorded.

Question: Prepare its adjusting entries: (1) using the financial statement effects template. and (2) in journal entry form.
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8421437.xls

1) a. Transactions Fees earned but not received Cash Asset + Noncash Assets (+) 925 Fees (accounts receivable) Balance Sheet = Liabilities = + Contributed capital + Earned Capital Revenues (+) 925...

This question was asked on Jan 18, 2013 and answered on Jan 19, 2013.

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