Bartow Photographic Services takes wedding and

graduation photographs At December #2303

Bartow Photographic Services takes wedding and graduation photographs. At December 31,
the end of Bartow’s accounting period, the following information is available:a. All wedding
photographs are paid for in advance, and all cash collected for them is credited to unearned
service revenue. Except for a year-end adjusting entry, no other entries are made for service
revenue from wedding photographs. During the year, Bartow received $42,600 for wedding
photographs. At year-end, $37,400 of the $42,600 had been earned. The beginning-of-the-year
balance of unearned service revenue was zero.b. During December, Bartow photographed 225
members of the next year’s graduating class of Shaw High School. The school has asked
Bartow to print one copy of a photograph of each student for the school files. Bartow delivers
these photographs on December 28 and will bill the school $5.00 per student in January of next
year. Revenue from photographs ordered by students will be recorded as the orders are
received during the early months of next year.c. Equipment used for developing and printing
was rented for $22,500. The rental term was for one year beginning on August 1 and the entire
year of rent was paid on August 1. The payment was debited to prepaid rent. d. Depreciation on
the firm’s building for the current year is $9,400. e. Wages of $4,170 are owed but unpaid and
unrecorded at December 31.f. Supplies at the beginning of the year were $2,400. During the
year, supplies costing $19,600 were purchased from Kodak. When the purchases were made,
their cost was debited to supplies. At year-end a physical inventory indicated that supplies
costing $4,100 were on hand.Required:1. Prepare the adjusting entries for each of these
items.2. By how much would net income be overstated or understated if the accountant failed to
make the adjusting entries?View Solution:
Bartow Photographic Services takes wedding and graduation photographs At December

ANSWER
http://paperinstant.com/downloads/bartow-photographic-services-takes-wedding-and-graduation-
photographs-at-december/

1/1
Powered by TCPDF (www.tcpdf.org)