Problem 4-5A


.		Trial Balance				Adjustment			AdjustedTrial Balance			Income Statement		Balance Sheet
.		Debit	Credit		Debit	Credit	Debit	Credit		Debit	Credit	Debit	Credit
.	Cash	6,110.00					6,110.00					6,110.00
.	Accounts Receivable	2,000.00					2,000.00					2,000.00
.	Office Supplies	6,375.00		(a)		1,365.00	5,010.00					5,010.00
.	Photo Supplies	11,630.00		(b)		9,020.00	2,610.00					2,610.00
.	Prepaid Insurance	3,720.00		(c)		2,280.00	1,440.00					1,440.00
.	Office Equipment	25,000.00					25,000.00					25,000.00
.	Accumulated Depreciation - Office Equipment		5,000.00	(d)		2,500.00		7,500.00					7,500.00
.	Photo Equipment	40,000.00					40,000.00					40,000.00
.	Accumulated Depreciation - Photo Equipment		12,000.00	(e)		4,000.00		16,000.00					16,000.00
.	Accounts Payable		25,500.00					25,500.00					25,500.00
.	Salaries Payable			(f)		2,000.00		2,000.00					2,000.00
.	Eddie Broadway, Capital		52,585.00					52,585.00					52,585.00
.	Eddie Broadway, Drawing	17,000.00					17,000.00					17,000.00
.	Photography Revenue		127,250.00					127,250.00			127,250.00
.	Rent Expense	6,000.00					6,000.00			6,000.00
.	Office Supplies Expense			(a)	1,365.00		1,365.00			1,365.00
.	Photo Supplies Expense			(b)	9,020.00		9,020.00			9,020.00
.	Insurance Expense			(c)	2,280.00		2,280.00			2,280.00


.		Salaries Expense	102,000.00		(f)	2,000.00		104,000.00		104,000.00
.		Depreciation Expense - Office Equipment			(d)	2,500.00		2,500.00		2,500.00
.		Depreciation Expense - Photo Equipment			(e)	4,000.00		4,000.00		4,000.00
.		Utilities Expense	2,500.00					2,500.00		2,500.00
.			222,335.00	222,335.00		21,165.00	21,165.00	230,835.00	230,835.00	131,665.00	127,250.00	99,170.00	103,585.00
.									Net loss	4,415.00			4,415.00
.		Adjustment Data:								==========	==========	==========	==========
.	(a)	Office supplies on-hand	5,010.00							127,250.00	127,250.00	99,170.00	99,170.00
.	(b)	Photo supplies on-hand	2,610.00
.	(c)	Insurance expired during the year	1,440.00
.	(d)	Depreciation of office equipment during the year	2,500.00
.	(e)	Depreciation of photo equipment during the year	4,000.00
.	(f)	Salaries unpaid at the end of the year	2,000.00
.
.
.		Income Statement
.		Dec 31, 20X2
.
.		Revenue:
.		Photography Revenue		$127,250.00


.
.	Expenses:
.	Salaries Expense	$104,000.00
.	Photo Supplies Expense	9,020.00
.	Rent Expense	6,000.00
.	Depreciation Expense - Photo Equipment	4,000.00
.	Depreciation Expense - Office Equipment	2,500.00
.	Insurance Expense	2,280.00
.	Utilities Expense	2,500.00
.	Office Supplies Expense	1,365.00
.	___Total Expenses		131,665.00
.
.	Net Loss		$4,415.00
.			=========
.
.
.	Statement of Owner's Equity
.	Dec 31, 20X2
.
.	Capital Jan 1, 20X2		$52,585.00


.	Office Equipment	$25,000.00
.	__Less: Accumulated Depreciation	7,500.00	17,500.00
.	Photo Equipment	40,000.00
.	__Less: Accumulated Depreciation	16,000.00	24,000.00
.				$58,670.00
.				=========
.	Liabilities
.	Accounts Payable		$25,500.00
.	Salaries Payable		2,000.00
.				$27,500.00
.
.	Owner's Equity
.	Capital			31,170.00
.				$58,670.00
.				=========