Recording Adjusting Entries Using the Financial Statement Effects Template $($FSET$)$

SnapShot Company, a commercial photography studio, has just completed its first full year of operations on December $31.$ General ledger account balances before final year$-$end adjustments follow. Assume that all balances are normal and that no adjusting entries were made to the accounts at any time during the year.

Account Balance

Cash $$5,805$

Accounts receivable $10,260$

Prepaid software subscription contract $34,020$

Prepaid insurance $8,019$

Supplies $11,475$

Equipment $61,560$

Accounts payable $5,157$

Performance obligations $7,020$

Common stock $64,800$

Photography fee revenue $93,096$

Wages expense $29,700$

Utilities expense $9,234$

An analysis of the firm's records discloses the following:

$1.$ Photography services of $$2,498$ 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.

$2.$ Equipment, purchased January $1,$ has an estimated life of $10$ years.

$3.$ Utilities expense for December is estimated to be $$1,080,$ but the bill will not arrive or be paid

until January of next year.

$4.$ The balance in Prepaid Software Subscription Contract represents the amount paid on January $1$

for a $2-$year contract for high$-$functioning photo editing software and its updates.

$5.$ In November, customers paid $$7,020$ cash in advance for photos to be taken for the

holiday season. When received, these fees were credited to Performance Obligations. By

December $31,$ all of the services related to these fees had been performed.

$6.$ A $3-$year insurance premium paid on January $1$ was debited to Prepaid Insurance.

$7.$ Supplies available at December $31$ are $$4,104.$

$8.$ At December $31,$ wages expense of $$1,013$ has been incurred but not paid or recorded.

Prepare the company's adjusting entries using the financial statement effects template.

Balance Sheet Income Statement

Cash Noncash Contra Contributed Earned Net

Transaction Asset $+$ Assets $-$ Assets $=$ Liabilities $+$ Capital $+$ Capital Revenues $-$ Expenses $=$ Income

$1$ Record unbilled fees. Answer $1$

Answer $2$

Answer $3$

Answer $4$

Answer $5$

Answer $6$

Answer $7$

Answer $8$

Answer $9$

$2$ Record depreciation. Answer $10$

Answer $11$

Answer $12$

Answer $13$

Answer $14$

Answer $15$

Answer $16$

Answer $17$

Answer $18$

$3$ Record December utilities. Answer $19$

Answer $20$

Answer $21$

Answer $22$

Answer $23$

Answer $24$

Answer $25$

Answer $26$

Answer $27$

$4$ Recognize software expense. Answer $28$

Answer $29$

Answer $30$

Answer $31$

Answer $32$

Answer $33$

Answer $34$

Answer $35$

Answer $36$

$5$ Recognize photo revenues. Answer $37$

Answer $38$

Answer $39$

Answer $40$

Answer $41$

Answer $42$

Answer $43$

Answer $44$

Answer $45$

$6$ Recognize insurance expense Answer $46$

Answer $47$

Answer $48$

Answer $49$

Answer $50$

Answer $51$

Answer $52$

Answer $53$

Answer $54$

$7$ Recognize supplies expense. Answer $55$

Answer $56$

Answer $57$

Answer $58$

Answer $59$

Answer $60$

Answer $61$

Answer $62$

Answer $63$

$8$ Record wage expense. Answer $64$

Answer $65$

Answer $66$

Answer $67$

Answer $68$

Answer $69$

Answer $70$

Answer $71$

Answer $72$

Totals

$0$

$+$

$0$

$-$

$0$

$=$

$0$

$+$

$0$

$+$

$0$

$0$

$-$

$0$

$=$

$0$