ETERNAL IMAGES

General Journals

DATE ACCOUNT TITLE DEBIT CREDIT

1 Cash 800,000.00
Montemayor Capital 800,000.00

3 Prepaid rent 40,500.00

Cash 40,500.00

5 Photography Equipment 96,000.00

Montemayor Capital 96,000.00

8 Office Equipment 48,000.00

Cash 48,000.00

10 Photography Equipment 200,000.00

Cash 200,000.00

12 Supplies 28,000.00
Accounts payable 28,000.00

13 Cash 101,700.00
Photography Revenue 101,700.00

17 Accounts Receivable 22,500.00

Photography Revenue 22,500.00

19 Accounts payable 14,000.00

Cash 14,000.00

25 Utilities expense 3,900.00

Cash 3,900.00

26 Utilities expense 4,000.00

Cash 4,000.00

28 Cash 10,000.00
Accounts receivable 10,000.00

29 Salaries Expense 10,000.00

Cash 10,000.00

30 Cash 4,900.00
Unearned Revenue 4,900.00

31 Montemayor Withdrawal 16,000.00

Cash 16,000.00

Adjusting Entries

a. Rent expense 20,250.00

Prepaid rent 20,250.00

b. Depreciation Expense - PE 4,000.00

Accumulated Depreciation - PE 4,000.00

c. Depreciation Expense - OE 1,000.00

Accumulated Depreciation - OE 1,000.00

d. Depreciation Expense - PE 3,000.00

Accumulated Depreciation - PE 3,000.00

e. Supplies expense 18,000.00

Supplies 18,000.00
 Cash Accounts receivable Office Equipment
800,000.00 40,500.00 22,500.00 10,000.00 48,000.00 -
101,700.00 48,000.00 12,500.00 48,000.00
10,000.00 200,000.00
4,900.00 14,000.00 Prepaid rent Photo Equipment
3,900.00 40,500.00 - 96,000.00 -
4,000.00 40,500.00 200,000.00
10,000.00 296,000.00
16,000.00 Supplies
916,600.00 336,400.00 28,000.00 - Montemayor Capital
580,200.00 28,000.00 800,000.00
- 96,000.00
Accounts payable Unearned Revenue 896,000.00
14,000.00 28,000.00 - 4,900.00
14,000.00 4,900.00 Montemayor Withdrawal
16,000.00 -
Utilities expense Photography Revenue 16,000.00
3,900.00 - 101,700.00
4,000.00 - 22,500.00
7,900.00 124,200.00

Salaries expense
10,000.00 -
10,000.00
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Unadjusted Trial Balance Adjusted Trial Balance
As of October 2020 As of October 2020

Debit Credit Debit Credit Debit Credit

Cash 580,200.00 580,200.00
Accounts receivable 12,500.00 12,500.00
Office Equipment 48,000.00 48,000.00
Photo Equipment 296,000.00 296,000.00
Prepaid rent 40,500.00 20,250.00 20,250.00
Supplies 28,000.00 18,000.00 10,000.00
Accounts payable 14,000.00 14,000.00
Unearned Revenue 4,900.00 4,900.00
Montemayor Capital 896,000.00 896,000.00
Photography Revenue 124,200.00 124,200.00
Montemayor Withdrawal 16,000.00 16,000.00
Utilities expense 7,900.00 7,900.00
Salaries expense 10,000.00 10,000.00
Rent expense 20,250.00 20,250.00
Depreciation Expense - PE 7,000.00 7,000.00
Accumulated Depreciation - PE 7,000.00 7,000.00
Depreciation Expense - OE 1,000.00 1,000.00
Accumulated Depreciation - OE 1,000.00 1,000.00
Supplies expense 18,000.00 18,000.00
1,039,100.00 1,039,100.00 46,250.00 46,250.00 1,047,100.00 1,047,100.00
 Eternal Images
Income Statement
For the month ended October 31, 2020

Revenue
Photography Revenue 124,200.00

Expenses
Utilities expense 7,900.00
Salaries expense 10,000.00
Rent expense 20,250.00
Depreciation Expense - PE 7,000.00
Depreciation Expense - OE 1,000.00
Supplies expense 18,000.00 64,150.00
Profit 60,050.00

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Statement of Changes in Equity
For the month ended October 31, 2020

Montemayor Capital 10/1/20 800,000.00

Add: Additional Capital 96,000.00
Profit 60,050.00 156,050.00
Less: Withdrawal 16,000.00
Montemayor Capital 10/31/20 940,050.00

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Statement of Financial Position
As of October 31, 2020
Current Assets
Cash 580,200.00
Accounts receivable 12,500.00
Prepaid rent 20,250.00
Supplies 10,000.00
Total Current Assets 622,950.00

Non current asset

Office Equipment 48,000.00
Accumulated Depreciation - OE 1,000.00 47,000.00
Photo Equipment 296,000.00
Accumulated Depreciation - PE 7,000.00 289,000.00
Total Non current asset 336,000.00

Total Assets 958,950.00

Current Liabilities
Accounts payable 14,000.00
Unearned Revenue 4,900.00
Total Liabilities 18,900.00

Owners Equity
Montemayor Capital 10/31/20 940,050.00

Total Libilities and equity 958,950.00

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