March 1. Tom operated a photographic business in his home on a part time basis. He decided to move a rented studio as of March 1, and to devote full time to the business, which was to be known as Fast Photographic Studio. The following assets were invested in the business: Cash, Br 4,600; Accounts Receivable, Br 1,060; Supplies, Br 2,300; Photographic Equipment, Br 26,000. There were no liabilities transferred to the business.

1. Paid Br 3600 the payment representing three months rent for the studio.
4. Purchased additional photographic equipment on account from XYZ Company Br 3600.
5. Received Br 960 from customers in payment of their account.
6. Paid Br 236 for a news paper advertisement.
10. Paid Br 600 to XYZ Company as a partial payment of an amount owed.
13. Paid receptionist Br 686 for two weeks salary.
16. Received Br 2,080 from sales for the 1st half of March.
20. Paid Br 760 for supplies.
27. Paid receptionist 686 for two weeks salary.
31. Received Br 2,980from sales for the 2nd half of March.
31. Paid Br 286 for electric bill for the month.
31. Sales on account totaled Br 2,786 for the month.
31. Tom withdrew Br 2,500 for her personal use.
Fast Photographic Studio has the following accounts in its ledger: Cash, 11; Accounts Receivable, 12; Supplies, 14; Prepaid Rent, 15; Photographic Equipment, 18; Accumulated depreciation, 19; Accounts Payable, 21; Salaries Payable, 22; Tom, Capital, 31; Tom, Drawing, 32; Income Summary, 33; Sales, 41; Salaries Expense, 51; Supplies Expense, 52; Rent Expense, 53; Depreciation Expense, 55; Utilities Expense, 56; Miscellaneous Expense,59.
Instruction
Analyze the above transactions.
Journalize the above transaction in a two column journal.
Post the journal entries to the ledger (Use T – Account).
Prepare trial balance as of March 31.
Additional Information (Adjustment Data):
Inventory of supplies on hand on March 31 amounted Br 1,400.
Depreciation on Photographic Equipment for the month is estimated at Br 500.
The Prepaid Insurance account has a debit balance of Br 3,600 representing a payment for three months rent beginning with March 1.
Accrued salaries but not paid for the month of March is Br 550.
Record the trial balance on ten column work sheet and complete the ten column work sheet.
Prepare
an income statement
a statement of owner’s equity
a balance sheet
Journalize the necessary adjusting entries on the basis of the work sheet.
Journalize the necessary closing entries on the basis of the work sheet.
Prepare a post- closing trial balance.
Journalize the reversing entries.

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