Question

Continuing Problem
Chapter 4-Instruction #1

The adjusted trial balance of PS Music as of July 31, 2019 is shown below:

PS Music Adjusted Trial Balance July 31, 2019
	Debit Balances		Credit Balances
Cash	9,945
Accounts Receivable	4,150
Supplies	275
Prepaid Insurance	2,475
Office Equipment	7,500
Accumulated Depreciation—Office Equipment			50
Accounts Payable			8,350
Wages Payable			140
Unearned Revenue			3,600
Peyton Smith, Capital			9,000
Peyton Smith, Drawing	1,750
Fees Earned			21,200
Music Expense	3,610
Wages Expense	2,940
Office Rent Expense	2,550
Advertising Expense	1,500
Equipment Rent Expense	1,375
Utilities Expense	1,215
Supplies Expense	925
Insurance Expense	225
Depreciation Expense	50
Miscellaneous Expense	1,855
	42,340		42,340

a. Prepare an income statement for the two months ended July 31, 2019.

Enter all amounts as positive number except for any Net Loss.

PS Music Income Statement For the Two Months Ended July 31, 2019
Fees Earned		$
Expenses:
Music Expense	$
Wages Expense
Office Rent Expense
Advertising Expense
Equipment Rent Expense
Utilities Expense
Supplies Expense
Insurance Expense
Depreciation Expense
Miscellaneous Expense
Total Expenses
Net Income		$

b. Prepare a statement of owner's equity for the two months ended July 31, 2019. (Note: Peyton Smith made investments in PS Music on June 1 and July 1, 2019.) If an amount is zero, enter in a "0".

PS MUSIC Statement of Owner's Equity For the Two Months Ended July 31, 2019
Peyton Smith, Capital, June 1, 2019		$
Investments during the two months	$
Net Income
	$
Withdrawals
Increase in Owner's Equity
Peyton Smith, Capital, July 31, 2019		$

c. Prepare a balance sheet as of July 31, 2019.

PS MUSIC Balance Sheet July 31, 2019
Assets
Current Assets:
	$
Total Current Assets		$
Property, Plant and Equipment:
	$
Total Property, Plant and Equipment
Total Assets		$
Liabilities
Current Liabilities:
	$
Total Liabilities		$
Owner's Equity
Total Liabilities and Owner's Equity		$

Answer 1

Income Statement:
Fees earned				21200
Expenses:
Music expenses			3610
Wages expenses			2940
Office rent expense			2550
Advertisement expense			1500
Equipment rent expenses			1375
Utilties expenses			1215
Supplies expenses			925
Insurance expenses			225
Depreciation expenses			50
Misc expenses			1855
Total expenses				16245
Net Income				4955
Statement of Owner's equity
Owner equity on June 01				9000
Investment of 2 months			0
Net Income			4955
Sub-total			4955
Drawings			1750
Increase in owner's equity				3205
Owner's equity on July 31				12205
Balance Sheet:
Assets:
Current assets:
Cash			9945
Accounts receivable			4150
Supplies			275
Prepaid insurance			2475
Total current assets				16845
Office equipmet			7500
Less: Accumulated dep			50
Total Property plant and equipment				7450
Total Assets				24295
Liabilities:
Current liabilities:
Accounts payable			8350
Wages payable			140
Unearrned revenue			3600
Total Liabilities				12090
Owner's equity:
Owner equity				12205
Total liabilities and equity				24295