Part 1. Journalizing

1. Analyze and record the journal entries for following transactions-

Bell's company had the following transactions in the month of August

August 1 Joseph Eetok , the owner, invested $20,000 cash into the business

And also invested a photography equipment with a fair value $42,000

1 Rented a studio, paying $12,000 for the next three months in advance.

5 Purchased Office Supplies for $1,800 cash

20 Received $9,200 in photography revenue

31 Paid $1,400 for August utilities

Part II

General Ledger accounts and Trial Balance-

Set up the Following Accounts ( use the balance format):- Cash (101), Office Supplies (124); Prepaid Rent (131); Photography Equipment (167), Joseph Eetok, Capital (301);Photography Revenue (401) and Utilities Expense (690).

Post the above journal entries to the general ledger (Balance Column Format). Prepare The August 31,2017 trial Balance. And income statement.

Part III Adjustments-

1.Prepare the appropriate adjusting entries for July 31, 2017, based on the following information available at the end of July. 10 marks

1. A annual insurance policy amounting to $1,200 was purchased on May 1,2017. The Prepaid Insurance account was debited and Cash credited on the same date.
2. The landscape company's lawn tractor was purchased for $3,200 in 2015. The salvage value of the lawn tractor at the ed of its four-year useful life is estimated to be $800. Calculate the annual depreciation for the year ended July 31, 2017, and record the corresponding adjusting journal entry.
3. On April 1, 2017, a customer paid for a six-month law service plan to begin June 1, 2017. The Journal entry credited the Unearned Service plan to begin June 1, 2017. The journal entry credited the Unearned Service Revenue account when the $ 3,000 payment was received. The monthly fee is $500.
4. The last weekly salary of $1,400 was paid to employees on Friday, July 25. Employees are paid based on a five-day workweek Salaries for July 28,29,30 and 31 have accrued.

1. Service fees of $1,800 were earned by July 31 but not recorded.