ACTG1A EXERCISES

Photography Studio House Inc., has just completed its full operations on December 31 of the current year. The general ledger account balances before year end adjustments follow. No adjusting entry have been made to the accounts at anytime during the year. Here are the accounts with open balances. Cash P950 P2,500 Accounts Payable P1,550 Unearned Income P1,250 Jobelle, Capital Service Income Wage Expense Utilities Expense P10,000 P23,900 P8,000 P2,380

Accounts Receivable Prepaid rent

P7,560

Prepaid Insurance P2,970 Supplies Equipment P3,240 P9,100

On December 31 of the current year the following data have need to adjust. 1. Client had paid P700 but the services are not yet rendered. 2. The equipment purchased Last January 1 has an estimated life of 10 years. 3. Utilities expense accrued P275. 4. The balance of the prepaid rent represents the amount paid last January 1 for two-year lease on the studio, one year rent had been incurred. 5. Last November customer paid P1,250 in advance for pictures. The payment received was credited to unearned income. On December 31 the income has been earned/incurred.

6. Insurance premium was already expired. 7. Wage expense of P180 has been recorded but not yet paid. Requirements: 1. Prepare the unadjusted/original trial balance of Inc. Photography Studio house

2. Journalize or make an adjustment entry on the given transactions for adjustment. 3. Prepare a Worksheet after adjustment entries are made.

4. Prepare financial Statements (Income statement and Balance Sheet).