Question

COMPREHENSIVE PROBLEM - TRANSACTION UST During 2020 Tim & Lori form Rocked Out, Inc., a music consulting business. Below are transactions that occurred during the year. 1) Tim and Lori each contribute $200,000 to Rocked Out, Inc cash in exchange for common stock 2) Rocked Out performs consulting services for a new musician customer on account for $120.000 "Rocked Out purchases music supplies from a vender for $30,000 from the customer involved in 12 4) In July, Rocked Out receives a partial payment of $60,000 from the customer invoiced in 12 5) Rocked Out completes consulting services for second musician totaling $240.000. Half of the amount is paid by the customer at the time the services are peformed. The rest is still owed to Rocked Out 6) Rocked Out pays $12,000 of the balance owed for supplies to the vendor in 13. 7) in October, Rocked Out receives $150,000 from a new famous client who they will provide consulting services to in January (the next accounting period). 8) in November, Rocked Out Inc pays a cash dividend of $18,000 to shareholders 9) Rocked Out's employees are owed $140,000 for their hard work. They are paid in the next accounting period. 10) In December, Rocked Out pays rent of $70,000 in advance for a new office space they plan to move into in the next accounting period. 11) In December, Rocked Out purchases a new car for $90,000. They put 20% down, and financed the balance with a loan.

Answer 1

Common Stock (Tim) Aton, and (losi). Dale Pertinan t Amant Date I Particulous LF Amount Dooooo 200000 By Cash AL To Balance 10 cld 400000 400000 Yooooo AC 2009 οοουο Date I Particulars 1) To Common Stock X To Common stoch 4 To Account receivable 5. To Consulting revenue 7. To Uneained revenue Date 6. 8. 1o 11. Particulars R By Account bayable By Dividend By A Prepaid reat by Vehicle Amount 12000 18ooo 70000 18000 6oooo 120003 15000u By Bol old 1 612000 730000 Accounts Receivable R Amount Dute hate I I particulus Porticulars Amount R By Cash Air 6oooo 2 To Revenue A 5. To Consulting revenue 120000 120000 - By Bal old 18000 240000 240000

Music Supplies Arco II Aunt Dute Particulars Particular To Account payable ! Sono S0000 By Bal cld SODOO oooo Date Consulting Revenue Are Porticulus L F Am Date | Particular CF Amont 2 By Account receivable Arc 120000 5. By Cash Apel 120000 To Balance old 36000s 5. By Account receivele 120000 360000 3bonus Date Particulares Amount Account Plejede Ale I Particular (LF Amt Date To Cash AK 12000 3) To Balance old By Music Suppher de Joooo 18000 Soova 3oooo

wa - Unearmed Revenue Ate (Achances from differ Homer To Balance cld By Cash ART 150000 oooo Soos Soooo Dividend Are - Date Particula Particular Amount 180v 8. By ush 18000 Balance old 1500 003 Date Amount Wages 1 Particulare To Balance ca Puyable Are Ant Date 1 Particula 140000 9 By Wages Aic 14000 140000 IM 140000 Yooon

Toulalas klager Are Practicalux Amt. Date To meges begable T 140000 :- Particulars By Bal eld 14oooo 9. 140000 1 40000 1400ue - Prepaid Particular . rent Ant Alle Date Deate Particles lo. To Cash Ale 10000 By Balance de Tooos Vehicle Arc Porticantes Amt Dale I Portinlun wat 11. 11. To Cash To Loon All Alc 18000 2ooo By Balonce old 1oooo 10003 loon A Ant Date | Particular To Balance eld Date I Particulars " By Vehicle Act Ant T2ooo 12000 12002

toda Trial Balance Crecht 400000 1 12 3. Common Stock Cash Accounts receivable 612000 180000 Boooo revenue 36oooo 18000 150000 18000 15. Consulting revenue 6. Account payable 7. Unearned revenue 8. Dividend og blages bayable lo. Wages 11. Prepaid rent 12. Vehicle 140000 Yoooo Toooo 9oooo 113. loan 2ooo 1140000 114000

Port 3 Income Statement 360000 Revenue I wages Profit 140000 22000 Part 4 Statement of Retaiement earning Profit during the year (Pood -3) 220000 (-) Dividenel (18000) 202000 I Amount 400000 612000 Part-3 . Balance Sheet Liabilities Amount Asset Common Stock Cash - Retained earning (Port-4) 202005 Account payable Accounts receivable Unewined revenue 6 150000 Music Supplies blage payable 140000 Prepaid rent 72000 Vehicle 18000 180000 3oooo Toooo Loan 982000 9oooo 982009