Ike Cream is a photographer who has started a new photograph

Ike Cream is a photographer who has started a new photography business. On December 1, 2018, Ike decided to incorporate under the name Berkey Photography. Ike has hired you to provide accounting services for the company. Read the instructions at the top of each tab. Prepare the required journal entries for the month of December, the necessary adjusting entries and closing entries as of December 31, and a complete set of financial statements, to include all proper labels. Show less sa orings Balance Sheet Requirement General Trial Balance Income St Journal Ledger Requirement: General Journal tab: Ike Cream is a photographer who has started a new photography business. On December 1, 2018, Ike decided to incorporate under the name Berkey Photography. Ike has hired you to provide accounting services for the company. Transactions 1-11: Prepare journal entries to record transactions for the first month in business. Transactions 12-15: Prepare the required adjusting entries. Transactions 16-19: Prepare the necessary closing entries. General Ledger tab: Entries are posted automatically to the general ledger. Abnormal balances are indicated in brackets. Review the general ledger accounts for normal balances. Trial balance tab: Use the dropdown button to review the unadjusted, adjusted, or post-dosing trial balance. Review for normal ending balances Income statement tab: Select the financial statement elements and accounts properly included on the income statement. The balances automatically populate from the trial balance selected. Statement of retained earnings tab: Select the proper label for each value appearing on the statement of retained eamings. Make sure the ending balance agrees with the general ledger balance Balance sheet tab: Select the financial statement elements and accounts properly included on the balance sheet. The balances automatically populate from the trial balance selected.

Solution

Berkey Photography Journal Entries December 31st Date Particular Amount (DR) Amount(Cr) 1-Dec Cash $         31,000.00      To Common Stock $                      31,000.00 (Being amount contributed by Ike Cream in exchange of 10000 common stock 1-Dec Office Equipment $         11,160.00      To Cash $                      11,160.00 (Being amount of Equipment purchases) 1-Dec Prepaid Rent $            2,200.00     To Cash $                        2,200.00 (Being amount of rent paid in advance for the first two months) 4-Dec Cash $            3,800.00      To Unearned Service Revenue $                        3,800.00 (Being amount of cash received from Kim Jong and Vince Molinari for their june wedding) 9-Dec Cash $            3,240.00       To Unearned Service Revenue $                        3,240.00 (Being amount received from Edward Taylor for late December photo shoot) 12-Dec Supplies $            2,100.00      To Accounts Payable $                        2,100.00 (Being amount of photography supplies received on account) 15-Dec Accounts Receivable $            6,800.00       To Service Revenue $                        6,800.00 (Being amount due for service performed ) 18-Dec Electricity Expenses $            2,100.00       To Electricity Expenses Payable $                        2,100.00 (Being amount of Electricity Expenses Payable) 28-Dec Accounts Payable $               800.00      To Cash $                            800.00 (Being amount paid on account) 30-Dec Salary $            1,350.00     To Cash $                        1,350.00 (Being amount paid for staff asistant\'s salary) 30-Dec Dividend $            1,600.00     To Cash $                        1,600.00 (Being amount of dividend paid) Adjusted Journal Entries Date Particular Amount (DR) Amount(Cr) 31-Dec Depreciation=($11160/3) $            3,720.00     To Accumulated Depreciation $                        3,720.00 (Being amount of Accumulated Depreciation) 31-Dec Rent $            1,100.00    To Prepaid Rent $                        1,100.00 (Being amount of December rent) 31-Dec Unearned Service Revenue $            3,240.00     To Service Revenue $                        3,240.00 (Being amount of service performed against which advance received from photo shoot and Edward Tylor) 31-Dec Supplies Expenses=($2100-$420) $            1,680.00      To Supplies $                        1,680.00 (Being amount of Supplies Expenses) 31-Dec Revenue=($6800+$3240) $         10,040.00      To Income Summary $                      10,040.00 (Being amount of revenue transfer to income summary account) 31-Dec Income Summary $            6,540.00        To Electricity Expenses $                        2,100.00        To Salary Expenses $                        1,350.00        To Supplies Expenses $                        1,680.00        To Rent $                        1,100.00       To Depreciation=($11160/36) $                            310.00 (Being amount of expenses transfer to income summary account) 31-Dec Income Summary      To Retained Earnings $            3,500.00 (Being Income transfer to income summary account) $                        3,500.00 31-Dec Retained Earnings $            1,600.00     To Dividends $                        1,600.00 (Being amount of Dividend)