Question

cions, post, and d. Prepare a trial balance at the end of May. Taking It Further A friend of yours is considering buying Sequel Theatre from the current owner, Using the information in the trial balance, comment on whether or not this may be a sound company for your friend to purchase. P2.8A (LO 2. 3. 4) AP Aduke Zhawaki is a talented musician who runs a business teaching music and playing in gigs with a variety of other musicians. Her business is operated as a proprietorship, under the name A to Z Music, which has a December 31 year end. On November 30, 2021, the company's general ledger included the following accounts (all accounts have normal balances): A. Zhawaki, capital $19,500 Rent expense $ 5,225 A. Zhawaki, drawings 31.350 Service revenue 47,075 Accounts payable 4,235 Supplies 1.450 Accounts receivable 2,200 Telephone expense 1,485 Cash 2,965 Travel expense 6,050 Equipment 17.500 Unearned revenue 825 Insurance expense 3,410 December transactions were as follows: Dec. 1 Paid December rent on her studio space, $475. 1 Purchased additional sound equipment for $3,500 from a friend who was going back to school to study accounting. The equipment was probably worth $5,000, but the friend needed the cash for tuition and was anxious to sell it. Paid $1,500 cash and promised to pay the remaining amount by December 5. Borrowed $2,500 cash from her parents and signed a note payable. 4 Paid her friend the remaining amount owing on the December 1 transaction Collected $1,800 from customers in payment of their accounts. 7 Paid the $310 monthly insurance premium. 8 Paid for $150 of supplies. 10 Paid $2,130 of the accounts payable from November, 15 Gave musical performances at two recitals, therefore providing services of $825. The customers had paid her in November. (Hint: In November, Aduke had recorded the $825 received in advance as a liability, Unearned Revenue. By performing at the recitals, she has paid" this obligation.) 20 Received $3,300 cash from students for music lessons provided in December. 21 Paid her monthly telephone bill of $135. 22 Billed customers $2,250 for providing music at several holiday parties. 24 Withdrew $3,000 for personal use. 29 Received $525 cash advance from a customer for a performance in January 30 Paid travel expenses of $695 for December in cash. 31 Paid her parents $210. of this amount, $10 is interest and the remainder is a principal payment on the note payable. Instructions a. Using T accounts, enter the November 30 balances in the ledger accounts b. Journalize the December transactions, c. Post the December journal entries to the T accounts. Add new accounts if needed. d. Prepare a trial balance at December 31, 2021. 0859f the 25 Paid the YH Curtin Club weeks of February

I have no idea how to do this.

Answer 1

A to Z Music Journal entries Date Account 1-Dec Rent expense Cash Credit Debit $ 475 $ 475 $ 3,500 1-Dec Equipment Cash Accounts Payable $ $ 1,500 2,000 $ 2,500 3-Dec Cash Notes Payable $ 2,500 $ 2,000 4-Dec Accounts Payable Cash $ 2,000 $ 1,800 4-Dec Cash Accounts Receivable $ 1,800 $ 310 7-Dec Insurance expense Cash $ 310 $ 150 8-Dec Supplies Cash $ 150 $ 2,130 10-Dec Accounts Payable Cash $ 2,130 $ 825 15-Dec Unearned Revenue Service Revenue $ 825 $ 3,300 20-Dec Cash Service Revenue $ 3,300 21-Dec Telephone expense Cash $ 135 $ 135 $ 2,250 22-Dec Accounts Receivable Service Revenue $ 2,250 $ 3,000 24-Dec A. Zhawaki, drawings Cash $ 3,000 $ 525 29-Dec Cash Unearned Revenue $ 525 30-Dec Travel expense $ 695 Cash $ 695 31-Dec Notes Payable Interest expense Cash $ $ 200 10 $ 210

Credit Credit Date Debit Date Credit Accounts Receivable Op bal $ 2,200 22-Dec $ 2,250 4-Dec $ 1,800 Date Debit Date Supplies Op bal $ 1,450 8-Dec $ 150 Date Debit Date Equipment Op bal $ 17,500 1-Dec $ 3,500 A to Z Music T Accounts Date Debit Date Credit Cash Op bal $ 2,965 1-Dec $ 475 3-Dec $ 2,500 1-Dec $ 1,500 4-Dec $ 1,800 4-Dec $ 2,000 20-Dec $ 3,300 7-Dec $ 310 29-Dec $ 525 8-Dec $ 150 10-Dec $ 2,130 21-Dec $ 135 24-Dec $ 3,000 30-Dec $ 695 31-Dec $ 210 Bal. Bal. Bal. $ 485 Accounts Payable 4-Dec $ 2,000 Op bal $ 4,235 10-Dec $ 2,130 1-Dec $ 2,000 Bal. $ 2,650 Unearned Revenue Op bal $ 15-Dec $ 825 29-Dec $ $ 1,600 Notes Payable Op bal $ - 3 1-Dec $ 200 3-Dec $ 2,500 $ 21,000 A. Zhawaki, capital Op bal $ 19,500 825 525 $ 2,105 $ 2,300 Bal. $ 19,500 A. Zhawaki, drawings Op bal $ 31,350 24-Dec $ 3,000 Bal. $ 525 Bal. Service Revenue Insurance expense Op bal $47,075 Op bal $ 3,410 15-Dec $ 825 7-Dec $ 310 20-Dec $ 3,300 22-Dec $ 2,250 Rent expense Op bal $ 5,225 1-Dec $ 475 $ 53,450 Bal. $ 5,700 Bal. $ 34,350 Telephone expense Op bal $ 1,485 21-Dec $ 135 Bal. Travel expense Op bal $ 6,050 30-Dec $ 695 Bal. $ 3,720 Interest expense Op bal $ 31-Dec $ 10 Bal. $ 1,620 Bal. $ 6,745 Bal. $ 10

A to Z Music Account Names Cash Accounts Receivable Supplies Equipment Accounts Payable Unearned Revenue Notes Payable A. Zhawaki, capital A. Zhawaki, drawings Service Revenue Insurance expense Rent expense Telephone expense Travel expense Interest expense Totals Trial Balance Debit Credit 485 2,650 1,600 21,000 2,105 525 2,300 19,500 34,350 53,450 3,720 5,700 1,620 6,745 77,880 77,880