Taylor Smith is a singer who has experienced international success in her career. On May 1, 2020,

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Taylor Smith is a singer who has experienced international success in her career. On May 1, 2020, Taylor started her business, Glitter and Gold Studio, where she teaches singing. The following activities occurred during July, the third month of operations:

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Required

1. Prepare journal entries to record the July transactions.

2. Set up the following general ledger accounts using T-accounts, entering the balances brought forward from June 30, 2020: Cash (101) $6,000; Supplies (126) $950; Equipment (161) $8,000; Accounts Payable (201) $1,500; Unearned Teaching Revenue (233) $9,800; Taylor Smith, Capital (301) $3,000; Taylor Smith, Withdrawals (302) $13,000; Teaching Revenue (401) $46,000; Wages Expense (623) $26,350; and Rent Expense (640) $6,000.

3. Post the entries to the T-accounts; calculate the ending balance in each account.

4. Prepare a trial balance at July 31, 2020.

5. Use the trial balance to prepare an income statement and statement of changes in equity for the three months ended July 31, 2020, as well as a balance sheet at July 31, 2020.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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