Rift Valley University

Group Assignment II for the course Principles of Accounting I

Ann Hill owns and operates a service giving business enterprise, Hill Photographic Studio. The chart of
accounts is given below.
Hill Photographic Studio
Chart of Accounts
Balance Sheet Accounts Income Statement Accounts
(1) Assets A/C No. (4) Revenue A/C No.
Cash 11 Sales 41
Accounts Receivable 12 (5) Expenses
Supplies 14 Supplies Expense 51
Prepaid Rent 15 Salary Expense 52
Photographic Equipment 18 Rent Expense 53
Accumulated Depreciation 19 Depreciation Expense 54
(2) Liabilities Miscellaneous Expense 59
Accounts Payable 21
Salaries Payable 22
(3) Capital
Ann Hill, Capital 31
Ann Hill, Drawing 32
Income Summary 33
The following business transactions were completed during the month of March, 2007.
March 1. The owner invested the following assets in the enterprise: Cash, $3,500;
Accounts Receivable, $950; Supplies, $1,200; and Photographic Equipment, $
15,000. There were no liabilities transferred to the business.
1. Paid $2,400 on a lease rental contract, the payment representing three months’ rent of
quarters for the studio.
4. Purchased additional photographic equipment on account from Palmer Photographic
Equipment Inc. for $2,500
5. Received $850 from customers in payment of their accounts.
6. Paid $125 for newspaper advertisement
10. Paid $500 to Palmer Photographic Equipment Inc. to apply on the $2,500
debt owed them
13. Paid receptionist $575 for two weeks’ salary.
16. Received $1,980 from sales from the first half of March.
20. Paid $650 for supplies.
27. Paid receptionist $575 for two weeks’ salary.
31. Paid $69 for telephone bill for the month.
31. Paid $175 for electric bill for the month.
31. Received $1,870 from sales for the second half of March.
31. Sales on account totaled $1,675 for the month
31. Hill withdrew $1,500 for her personal use.
 Additional information:
a) Supplies used during the period $960
b) Prepaid Rent expired during the period $800
c) Photographic Equipment deprecation during the period $175
d) Salary accrued but not paid on March 31,is $115

Required:
1) Analyze and record the transactions in a general journal
2) Post to the ledger
3) Prepare the Trial Balance, collect adjustment data(to be provided) and complete the work
sheet
4) Prepare financial statements
5) Journalize and post adjusting entries
6) Journalize and post closing entries
7) Prepare post-closing trial balance