On January 1, Pulse Recording Studio (PRS) had the following account balances.
Accounts Payable | $ | 8,200 |
Accounts Receivable | 6,900 | |
Accumulated Depreciation—Equipment | 6,700 | |
Cash | 3,640 | |
Cash Equivalents | 1,640 | |
Common Stock | 10,400 | |
Deferred Revenue | 3,900 | |
Equipment | 30,300 | |
Notes Payable (long-term) | 12,400 | |
Prepaid Rent | 3,420 | |
Retained Earnings | 4,810 | |
Supplies | 510 | |
The following transactions occurred during January.
Required:
1, 2 & 3 :
In the books of Pulse Recording Studio:
Transaction/ Event | Account Titles | Debit | Credit |
January | $ | $ | |
a. | Cash | 2,420 | |
Accounts Receivable | 2,420 | ||
b. | Accounts Payable | 4,370 | |
Cash | 4,370 | ||
c. | Supplies | 200 | |
Accounts Payable | 200 | ||
d. | Deferred Revenue | 3,900 | |
Recording Revenue | 3,900 | ||
e. | Cash | 4,750 | |
Recording Revenue | 4,750 | ||
f. | Accounts Payable | 4,000 | |
Cash | 4,000 | ||
g. | Cash | 1,010 | |
Cash Equivalents | 1,010 | ||
h. | Salaries and Wages Expense | 1,400 | |
Cash | 1,400 | ||
i. | Cash | 2,940 | |
Deferred Revenue | 2,940 | ||
j. | Accounts Receivable | 470 | |
Cash | 470 | ||
k. | No journal entry required | 0 | 0 |
l. | No journal entry required | 0 | 0 |
m. | Cash | 4 | |
Interest Revenue | 4 | ||
n. | Bank Service Charge Expense | 4 | |
Cash | 4 | ||
o. | Depreciatio Expense | 240 | |
Accumulated Depreciation: Equipment | 240 | ||
p. | Salaries and Wages Expense | 1,500 | |
Salaries and Wages Payable | 1,500 | ||
q. | Rent Expense | 1,140 | |
Prepaid Rent | 1,140 | ||
r. | Supplies Expense | 510 | |
Supplies | 510 | ||
s. | Utilities Expense | 200 | |
Accounts Payable | 200 | ||
t. | Interest Expense | 28 | |
Interest Payable | 28 | ||
u. | Income Tax Expense | 1,700 | |
Income Taxes Payable | 1,700 |
5.
Pulse Recording
Studio Income Statement For the month ended January 31 |
||
Revenues | ||
Recording revenue | $ 8,650 | |
Interest revenue | 4 | |
Total revenues | $ 8,654 | |
Expenses | ||
Salaries and Wages Expense | 2,900 | |
Supplies Expense | 510 | |
Rent Expense | 1,140 | |
Utilities Expense | 200 | |
Depreciation Expense | 240 | |
Bank Service Charge Expense | 4 | |
Interest Expense | 28 | |
Income Tax Expense | 1,700 | |
Total Expenses | 6,722 | |
Net Operating Income | $ 1,932 |
7.
Pulse Recording
Studio Balance Sheet January 31 |
||
Assets | ||
Current Assets | ||
Cash | $ 4,520 | |
Cash Equivalents | 630 | |
Accounts Receivable | 4,950 | |
Supplies | 200 | |
Prepaid Rent | 2,280 | |
Total Current Assets | $ 12,580 | |
Property Plant and Equipment | ||
Equipment | 30,300 | |
Accumulated Depreciation: Equipment | (6,940) | 23,360 |
Total Assets | $ 35,940 | |
Liabilities and Stockholders Equity | ||
Current Liabilities | ||
Accounts Payable | 230 | |
Salaries and Wages Payable | 1,500 | |
Income Taxes Payable | 1,700 | |
Interest Payable | 28 | |
Deferred Revenue | 2,940 | |
Total Current Liabilities | 6,398 | |
Long Term Liabilities | ||
Notes Payable | 12,400 | |
Total Liabilities | 18,798 | |
Stockholders Equity | ||
Common Stock | 10,400 | |
Retained Earnings | 6,742 | |
17,142 | ||
Total Liabilities and Stockholders Equity | $ 35,940 |
On January 1, Pulse Recording Studio (PRS) had the following account balances. Accounts Payable $ 8,200...
On January 1, Pulse Recording Studio (PRS) had the following account balances. Accounts Payable $ 8,200 Accounts Receivable 6,900 Accumulated Depreciation—Equipment 6,700 Cash 3,640 Cash Equivalents 1,640 Common Stock 10,400 Deferred Revenue 3,900 Equipment 30,300 Notes Payable (long-term) 12,400 Prepaid Rent 3,420 Retained Earnings 4,810 Supplies 510 The following transactions occurred during January. Received $2,420 cash on 1/1 from customers on account for recording services completed in December. Wrote checks on 1/2 totaling $4,370 for amounts owed on account at...
Fill out the balance sheet with the transactions and balances above: On January 1, Pulse Recording Studio (PRS) had the following account balances Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Cash Cash Equivalents Common Stock Equipment Notes Payable (long-term) Prepaid Rent Retained Earnings Supplies Unearned Revenue $ 8,500 7,000 6,000 3,800 1,500 10,000 30,000 12,000 3,000 5,300 500 4,000 The following transactions occurred during January. 1. Received $2,500 cash on 1/1 from customers on account for recording services completed in December...
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