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Problem 1

Accent Photography
Income Statement
Year Ended December 31, 2011
Revenue: Debit Credit
Service Revenue $81,000.00
Total Revenue $81,000.00
Expenses:
Insurance Expenses $8,000.00
Salary Expenses $27,000.00
Advertising Expenses $1,000.00
Total Expenses $36,000.00
Net Income $45,000.00
Accent Photography
Statement of Owner's Equity
Year Ended December 31, 2011
Accent Photography, capital, December 31, 2010 $20,000.00
Add: Net Income $45,000.00
Owners Investment $33,000.00
Subtotal $98,000.00
Less: Withdrawals -$15,000.00
Accent Photography, capital, December 31, 2011 $83,000.00
Accent Photography
Balance Sheet
December 31,2011
Assets Liabilities
Cash $31,000.00 Accounts Payable $16,000.00
Equipment $60,000.00 Note Payable $12,000.00
Accounts Receivable $10,000.00 Total Liabilities $18,000.00
Total Assets $101,000.00
Owners Equity $83,000.00
Total liabilities and Owners Equity $101,000.00
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Problem 2

Journal Entry
Transaction information for the month of April for Dr. Warren Smith, MD
Apr 5 Paid monthly rent on medical equipment-$780.00
Apr 9 Paid $18,000 cash to purchase land from office site.
Apr 10 Purchase Supplies on account $1200.00
Apr 19 Borrowed $20,000 from bank for business use, Smith signed a note payable to the bank in the name of the business.
Apr 22 Paid $800 on account Paid $800 on account
Apr 30 Revenues earned during the month included $5900 cash and $4900 on account.
Apr 30 Paid employees salaries $2000, office rent $1800, and utilities $420, make a single compound entry.
Apr 30 Owner withdrew $9000
Journal Entry Debit Credit
Apr 1 Cash $78,000.00
Warren Smith, Capital $78,000.00
Apr 5 Paid monthly rent on medical equipment-$780.00
Apr 5 Medical Equipment 780
Cash 780
Apt 9 Paid $18,000 cash to purchase land from office site
Apr 9 Land 18000
Cash 18000
Apr 10 Purchase Supplies on account $12,000
Apr 10 Supplies 1200
Account Payable 1200
Apr 19 Borrowed $20,000 from bank for business use, Smith signed a note payable to the bank in the name of the business.
Apr 19 Cash 20000
Note Payable 20000
Apr 22 Paid $800 on account
Apr Accounts Payable 800
Cash 800
Apr 30 Revenues earned during the month included $5900 cash and $4900 on account.
Apr 30 Accounts Receiveable 4900
Service Revenue 5900
Apr 30 Paid employees salaries $2000, office rent $1800, and utilities $420, make a single compound entry.
Apr 30 Salary Expense 2000
Cash 2000
Apr 30 Owner withdrew $9000
Apr 30 Warren Smith, withdrawal 9000
Cash 9000
T ACCOUNTS
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
CASH SUPPLIES EQUIPMENT
Apr 1, 78000 Apr 9, 18000 Apr 10, 1200 Apr 5, 780
Apr 19, 20000 Apr 5, 780
Apr 22, 800 Bal 1200 Bal 780
Apr 30, 420
Apr 30, 2000
Apr 30, 1800
Bal 74200
LAND WARREN SMITH, WITHDRAWALS
Apr 9, 18000 Apr 30, 9000
Bal 18000 Bal 9000
UTILITIES EXPENSE RENT EXPENSE ACCOUNTS PAYABLE
Apr 30, 420 Apr 30, 1800 Apr, Apr 10, 1200
Bal 420 Bal 1800 Bal 1200
NOTE PAYABLE WARREN SMITH, CAPITAL
Apr 19, 20000 Apr1, 78000
Bal 20000 Bal 78000
SALARY EXPENSE ACCOUNTS RECEIVABLE SERVICE REVENUE
Apr 30, 2000 Apr 30, 4900 Apr 30, 5900
Bal 2000 Bal 4900 Bal 5900
TRIAL BALANCE
WARREN SMITH, MD
04/30/10
ACCOUNTS DEBIT CREDIT
CASH 74200
ACCOUNTS RECEIVEABLE 4900
OFFICE SUPPLIES 1200
EQUIPMENT 780
LAND 18000
ACCOUNTS PAYABLE 1200
WARREN SMITH CAPITAL 78000
WARREN SMITH WITHDRAWAL 9000
SERVICE REVENUE 5900
SALARY EXPENSE 2000
RENT EXPENSE 1800
UTILITIES EXPENSE 420
NOTE PAYABLE 20000
BALANCE 112300 105100
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Sheet3
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