Knowledge of accounting Challenging problem

Answer 1

July 2001

1 Jim invested $40,000 cash and Photography equipment valued at $20,000 in the business.

1 Purchased office supplies for cash $1300

1 Purchased photography supplies on account $6700

1 Paid July rent $1700

1 Paid for a newspaper ad $500

2 Purchased office equipment on account $6750

2 Paid property insurance for the upcoming year $3600

3 Purchased a computer system and software, $3200 by issuing a note payable

5 Paid for pormotional handouts $150

6 Paid miscellaneous expenses $175

7 Paid salaries of employees $1400

7 Recored weeks cash receipts for photo work $1350

8 Paid for carpet cleaning (miscellaneous expense) $75

9 Recored photo work done for a customer on account $855

9 Purchased additional photography supplies on account 3200

10 Purchased additional photography equipment for cash 3500

10 Enetered into a contract with southside food vendors to place vending machines in the waiting room. Jim is to receive 10% of all sales, with a minimum of $200 monthly, Receieved $200 as an advance payment

11 Purchased furniture for the lobby area 1700 paid cash in full

12 Paid cash for the installation of overhead lighting fixtures 900

15 Recorded second weeks cash receipts for photo work 2170

15 Paid weekly salaries 1400

17 Jim withdrew cash for personal use 800

18 paid for tv ad 710

19 Paid for repair equipment 80

19 collected 500 for the photo work done on account on July 9

22 recorded third weeks cash receipts for photo work 2045

22 paid weekly salaries 1400

23 did a special wedding photo session for a customer on credit 550

28 recorded fourth weeks cash receipts for photo work 1995

29 paid salaries of employees 1400

30 paid water bill for July 75

30 paid electric bill for July 1095

31 made a 500 payment on the note for the computer purchased on July 3

31 made a payment for the office equipment purchased on account 2000

31 made a payment on the photography supplies purchased on account 1000

31 wrote a business check to pay for jims home phone bill 310

31 southside food vendors reported a total of 2800 of vending machine sales for July. Ten percent of these is 280. Since 200 had already been received and recorded in July Jim is owed 80. Received the 80 check.