Question

The transactions completed by PS Music during June 2018 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the business's operations: July 1. Peyton Smith made an additional investment in PS Music in exchange for common stock by depositing $5,000 in PS Musics checking account 1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, $1,750. 1. Paid a premium of $2,700 for a comprehensive insurance policy covering liability, theft, and fire The policy covers a one-year period. 2 Received $1,000 on account. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600. Any additional hours beyond 80 will be billed to KXMD at $40 per hour, in accordance with the contract, Peyton received $7,200 from KXMD as an advance payment for the first two months. Paid $250 on account. 4. Paid an attorney $900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense) 5. Purchased office equipment on account from Office Mart, $7,500. Paid for a newspaper advertisement, $200. Received $1,000 for serving as a disc jockey for a party. 13. Paid $700 to a local audio electronics store for rental of digital recording equipment. 14. Paid wages of $1,200 to receptionist and part-time assistant. 11.

Answer 1

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy General 1 1 - 3 Autosum * Paste Arial Narrow -10 - A A BI U DA Font DO Wrap Text Merge & Center Alignment Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard Fill 2 Clear Sort & Find & Filter Select Editing Number Cells N16 - А F G H I J K L M N 11 PS Music 12 Journal Entries 13 Date Particular 14 01-Jul Cash To Peyton Smith's Capital Debit Credit 5,000.00 $ 5,000.00 $ 1,750.00 01-Jul Office rent expense To Cash $ 1,750.00 2,700.00 01-Jul Prepaid Insurance To Cash $ 2,700.00 $ ,000.00 02-Jull Cash To Accounts Receivable $ 1,000.00 7,200.00 03-Jul Cash To Unearned Revenue $ 7,200.00 $ 250.00 250.00 03-Jul Accounts Payable To Cash 31 32 04-Jul Miscellaneous Expense Ke Sheet1 Sheet2 Sheet3 Select destination and press ENTER or choose Paste 900.00l EO J 100% 9 Se u 09:56 10-02-2020 SAAD ENG N W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy DO General Wrap Text Merge & Center 1 1 - 3 Autosum * Arial Narrow -10 - A A BI U DA Font Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard Fill 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells N16 - А F G H I J K L M N 32 4-Jul Miscellaneous Expense To Cash $ 900.00 IS 900.00 $ 7,500.00 05-Jul Office Equipment To Accounts Payable $ 7,500.00 200.00 08-Jul Advertising Expense To Cash $ 200.00 $ 1,000.00 11-Jul Cash To Fees Earned 1,000.00 700.00 13-Jul Equipment Rent Expense To Cash 700.00 $ 1,400.00 14-Ju Wages Expense To Cash 1,400.00 2,000.00 16-Jul Cash To Fees Earned $ 2,000.00 850.00 52 53 Re Ready 18-Jul Supplies S heet1 Sheet2 Sheet3 BO op ^ 100% u - 09:56 O ENG 10-02-2020 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy DO General Wrap Text Merge & Center 1 1 - 3 Autosum * Arial Narrow -10 - A A BI U DA Font Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard Fill 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells N16 - А F G H I J K L M N 850.00 18-Ju Supplies To Accounts Payable 850.00 620.00 21-Ju Music Expense To Cash $ 620.00 800.00 22-Jul Advertisement Expense To Cash $ 800.00 23-Jul Cash To Accounts Receivable To Fees Earned 750.00 1,750.00 $ 2,500.00 $ 915.00 27-Jul Utilities Expense To Cash 915.00 $ 1,200.00 28-Jul Wages Expense To Cash 1,200.00 540.00 29-Jul Miscellaneous Expense To Cash $ 540.00 Sheet1 Sheet2 Sheet30 Ke Ready BO 100% u 09:56 10-02-2020 g A O ENG N W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy DO General Wrap Text Merge & Center 1 1 - 3 Autosum * Arial Narrow -10 - A A BI U DA Font Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard Fill 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells - N16 А F G H I J K L M N 29-Jul Miscellaneous Expense To Cash 540.00 540.00 30-Jul Cash Accounts Receivable To Fees Earned $ $ 500.00 1,000.00 $ 1,500.00 $ 3,000.00 31-Ju Cash To Fees Earned $ 3,000.00 $ 1,400.00 31-Jul Music Expense To Cash $ 1,400.00 $ 1,250.00 31-Jul Dividend To Cash $ 1,250.00 T-Accounts Cash Account Date Account Title Debit Credit Debit Balance Credit Balance 92 01-Jul Balance 01-Jul Pevton's Smith Capital Sheet1 Sheet2 Sheet3 3,920.00 8.920 001 92 5.000.001 K ™ Ready BOU 100% 0 09:56 10-02-2020 PADENG N W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy General 1 1 - 3 Autosum * LE Paste Format Painter Clipboard Arial Narrow -10 - A A BI U DA Font - Wrap Text 3 Merge & Center * Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells - A88 A F G H I J K L M N Cash Account Date Debit Credit Debit Balance Credit Balance $ 5,000.00 1,750.00 2,700.00 $ $ $ $ 1,000.00 7,200.00 250.00 $ 900.00 $ 200.00 $ Account Title 01-Jul Balance 01-Ju Peyton's Smith Capital 01-Jul Office Rent Expense 01-Jul Prepaid Insurance 02-Jul Accounts Receivable 03-Jul Unearned Revenue 03-Jul Accounts Payable 04-Jul Miscellaneous Expense 08-Jul Advertisement Expense 11-Jul Fees Earned 13-Jul Equipment Rent Expense 14-Jul Wages Expense 16-Jul Fees Earned 21-Jul Music Expense 22-Jul Advertisement Expense 23-Jul Fees Earned 27-Ju Utilities Expense 28-Ju Wages Expense 29-Jul Miscellaneous Expense Sheet1 Sheet2 Sheet3 $ 1,000.00 3,920.00 8,920.00 7,170.00 4,470.00 5,470.00 12,670.00 12,420.00 11,520.00 11,320.00 12,320.00 11,620.00 10,220.00 12,220.00 11,600.00 10,800.00 11,550.00 10,635.00 9,435.00 8.895.00l 102 700.00 $ 1,400.00 $ 2,000.00 104 105 620.00 800.00 $ $ 750.00 106 107 108 109 $ 915.00 $ 1,200.00 $ 540.000 $ 110 Ready 20 J 100% 0 09:57 10-02-2020 + 0. SAAD ENG

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy General 1 1 - 3 Autosum * Arial Narrow -10 - A A BI U DA Font - Wrap Text 3 Merge & Center Paste * Insert Delete Format Conditional Format Formatting as Table Styles Format Painter Clipboard Cell Styles Fill 2 Clear Sort & Find & Filter Select Editing Clipboard Alignment Number Cells - A88 A F G H I J K L M N $ 800.00 $ 106 107 750.00 108 109 110 22-Jul Advertisement Expense 23-Jul Fees Earned 27-Jul Utilities Expense 28-Jul Wages Expense 29-Ju Miscellaneous Expense 30-Jul Fees Earned 31-Jul Fees Earned 31-Ju Music Expense 31-Ju Dividends $ $ 915.00 $ 1,200.00 $ 540.00 $ 10,800.00 11,550.00 10,635.00 9,435.00 8,895.00 9,395.00 12,395.00 10,995.00 9,745.00 500.00 3,000.00 $ $ 1,400.00 $ 1,250.00 $ Accounts Receivable 118 Date Debt Credit Debit Balance Credit Balance 1,000.00 Account Title 01-Jul Balance 02-Ju Cash 23-Jul Fees Earned 30-Ju Fees Earned 1,000.00 $ 1,750.00 1,000.00 1,750.00 2,750.00 124 125 126 Supplies 107 Sheet1 Sheet2 Sheet30 Ke Ready BOU 100% 0 09:57 g A O ENG 10 10-02-2020 0 .

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy General 1 1 - 3 Autosum * Arial Narrow -10 - A A BI U DA Font - Wrap Text 3 Merge & Center Paste * Insert Delete Format Conditional Format Formatting as Table Styles Format Painter Clipboard Cell Styles Fill 2 Clear Sort & Find & Filter Select Editing Clipboard Alignment Number Cells - A88 A F G H I J K L M N 125 126 Supplies Date Debit Credit Debit Balance 129 Account Title 01-Jul Balance 18-Jul Accounts Payable Credit Balance 170.00 1,020.00 130 850.00 Prepaid Insurance Debit Debit Balance Credit Balance Account Title 01-Ju Cash Credit 2.700.00 $ 2,700.00 Office Equipment 140 Date Debit Debit Balance Account Title 05-Jul Accounts Payable Credit 7,500.00 Credit Balance 7,500.00 144 Accounts Payable H 145 i Ready Sheet1 Sheet2 Sheet3 BO 100% u 09:57 OPAO ENG 10-02-2020 0 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy General 1 - Wrap Text 3 Merge & Center 0 . Autosum LE Paste Format Painter Clipboard x H Arial Narrow -10 - A A BI U DA Font * Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format AutoSum - A Fill Sort & Find & 2 Clear Filter Select Editing Alignment Number Cells - A88 A в с Accounts Payable D E F G H I J K L M N 144 145 146 Date Debit Credit Debit Balance Credit Balance $ 250.00 147 Account Tide 01-Jul Balance 03-Jul 05-Jul 148 $ 250.00 $ 149 150 7,500.00 850.00 $ $ 7,500.00 8,350.00 18-Jul Unearned Revenue Date Debit Credit Account Title 03-Jul Debit Balance 7,200.00 Credit Balance $ 7,200.00 Peyton's Smith Capital Peytor's Sman Capital Date Debit Credit Debit Balance Account Title 01-Jul Balance 01-Ju Cash Credit Balance $ 4,000.00 $ 9,000.00 $ 5,000.00 162 163 164 Ke Ready Dividends Sheet1 Sheet2 Sheet30 BO 100% u ENG u 09:57 10-02-2020 SAAD

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy General 1 1 - 3 Autosum * LE Paste Format Painter Clipboard Arial Narrow -10 - A A BI U DA Font - Wrap Text 3 Merge & Center * Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing Clipboard Alignment Number Cells - A88 A C D E F G H I J K L M N 163 164 Dividends Debit Credit Debit Balance 165 166 Date 167 168 169 Account Title 01-Jul Balance 31-Jul Cash Credit Balance 500.00 1,750.00 $ 1,250.00 170 Fees Earned Date Debit Credit Debit Balance 174 176 Account Title 01-Jul Balance 11-Ju Cash 16-Jul Cash 23-Jul Cash 23-Jul Accounts Receivable 30-Jul Cash 30-Jul Accounts Receivable 31-Jul Cash 1,000.00 2,000.00 750.00 1,750.00 500.00 1,000.00 3,000.00 Credit Balance $ 6,200.00 $ 7,200.00 $ 9,200.00 $ 9,950.00 $ 11,700.00 $ 12,200.00 $ 13,200.00 $ 16,200.00 178 179 180 $ $ 181 Wages Expense 182 183 *** Sheet1 Sheet2 Sheet3 03 Ready 0 0 J 100% 0 0 09:57 10-02-2020 gA A O ENG

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy General 1 1 - 3 Autosum * Arial Narrow -10 - A A BI U DA Font - Wrap Text 3 Merge & Center Paste * Insert Delete Format Conditional Format Formatting as Table Styles Format Painter Clipboard Cell Styles Fill 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells - A88 A в D E F G H I J K L M N с Wages Expense 182 183 184 Date Account Title Debit Credit Debit Balance Credit Balance 186 01-Jul Balance 14-Jul Cash 28-Jul Cash 1,400.00 1,200.00 400.00 1,800.00 3,000.00 ş Office Rent Expense 188 189 190 191 Date Debit Credit Debit Balance 192 Account Title 01-Jul Balance 01-Jul Cash Credit Balance 800.00 2,550.00 1,750.00 Equipment Rent Expense 196 Debit Credit Debit Balance 197 Date 198 199 Account Title 01-Jul Balance Credit Balance 675.00 1,375.00 13-Jul Cash 700.00 200 Utilities Expense 201 202 Ke Ready Sheet1 Sheet2 Sheet30 BOU 100% OPAO ENG NO 0 09:58 10-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy General 1 1 - 3 Autosum * Arial Narrow -10 - A A BI U DA Font - Wrap Text 3 Merge & Center Paste * Insert Delete Format Conditional Format Formatting as Table Styles Format Painter Clipboard Cell Styles Fill 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells - A88 A в D E F G H I J K L с Unities Expense M N 201 202 203 Date Debit Credit Debit Balance Credit Balance Account Title 01-Jul Balance 27-Jul Cash 300.00 1,215.00 915.00 207 Music Expense Date Debit Credit Debit Balance Account Title 01-Jul Balance 21-Ju Cash 31-Ju Cash $ $ Credit Balance 1,590.00 2,210.00 3,610.00 620.00 1.400.00 214 Advertising Expense Debit Credit Debit Balance 216 Date 217 218 219 220 221 Account Title 01-Jul Balance 08-Jul Cash 22-Jul Cash Credit Balance 500.00 700.00 1,500.00 $ 200.00 800.00 S Supplies Expense Sheet1 Sheet2 Sheet3 Ready BOU 100% OPAO ENG NO 0 09:58 10-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy General 1 1 - 3 Autosum * Arial Narrow -10 - A A BI U DA Font - Wrap Text 3 Merge & Center Paste * Insert Delete Format Conditional Format Formatting as Table Styles Format Painter Clipboard Cell Styles Fill 2 Clear Sort & Find & Filter Select Editing Clipboard Alignment Number Cells - A88 A в с D E F G H I J K L M N Supplies Expense Date Debit Credit Debit Balance Account Title 01-Jul Balance Credit Balance 180.00 Miscellaneous Expense Date Debit Credit Debit Balance Account Title 01-Jul Balance 04-Jul Cash 29-Jul Cash Credit Balance 415.00 1,315.00 1,855.00 900.00 1 $ 540.00 234 PS Music Company Unadjusting Trial Balance on July 31st 235 236 Account Title Debit Credit 237 Cash 9,745.00 238 Accounts Receivable 2,750.00 239 Supplies 1,020.00 240 Prepaid Insurance 2,700.00 Sheet1 Sheet2 Sheet3 Ready BO 100% u A NA 09:58 ENG 10-02-2020

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy General 1 1 - 3 Autosum * LE Paste Format Painter Clipboard Arial Narrow -10 - A A BI U DA Font - Wrap Text 3 Merge & Center * Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing Clipboard Alignment Number Cells - A88 A C D J K L M N 232 PS Music Company Unadjusting Trial Balance on July 31st 234 235 Debit Credit 9,745.00 2,750.00 1,020.00 2,700.00 7,500.00 236 Account Title 237 Cash 238 Accounts Receivable 239 Supplies 240 Prepaid Insurance 241 Office Equipment 242 Accounts Payable 243 Unearned Revenue 244 Peyton Smith, Capital 245 Dividends 246 Fees Earned 247 Music Expense 248 Wages Expense 249 Office Rent Expense 250 Advertising Expense $ $ $ 8,350.00 7,200.00 9,000.00 1,750.00 16,200.00 TS $ 3,000.00 2,550.00 2,550.00 1,500.00 s 251 Equipment Rent Expenses 252 Utilities Expense IS Sheet1 Sheet2 Ready 1,375.00 1,215.00 Sheet3 BO 100% u 09:58 10-02-2020 SAAD ENG NO W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy General 1 1 - 3 Autosum * LE Paste Format Painter Clipboard Arial Narrow -10 - A A BI U DA Font - Wrap Text 3 Merge & Center * Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing Clipboard Alignment Number Cells - F G H I J K L M N 9,745.00 2,750.00 1,020.00 2,700.00 7,500.00 $ A88 A 237 Cash 238 Accounts Receivable 239 Supplies 240 Prepaid Insurance 241 Office Equipment 242 Accounts Payable 243 Unearned Revenue 244 Peyton Smith, Capital 245 Dividends 246 Fees Earned 247 Music Expense 248 Wages Expense 249 Office Rent Expense 250 Advertising Expense 8,350.00 7,200.00 9,000.00 1,750.00 16,200.00 TS $ 3,000.00 2,550.00 2,550.00 1,500.00 251 Equipment Rent Expenses 252 Utites Expense 253 Supplies Expense 254 Miscellaneous Expenses 255 Total 256 257 Ke Sheet1 Sheet2 Ready 1,375.00 1,215.00 180.00 1,855.00 41,250.00 $ 41,250.00 Sheet30 BO pl - 100% u ENG 10-02-2020W 09:58 O