Beyond Music provides DJ services for events such as high school dances, weddings, and corporate events. Michael Cantu started the business on June 1, 2023. The June activities resulted in totals at June 30, 2023, as follows (illustrated in accounting equation format):

Required
Use additions and subtractions to show the effects of each July transaction on the items in the equation. Do not determine new totals for the items of the equation after each transaction. Next to each change in equity, state whether the change was caused by an investment, a revenue, an expense, or a withdrawal. Determine the final total for each item and verify that the equation is in balance.

Analysis Component:
Identify which GAAP guides your treatment of the July 15 transaction. Explain your answer.

Transcribed Image Text:

Assets Liabilities Equity Cash + Accounts Receivable + Office Supplies + Event Equip. + Sound System Equip. = Accounts Payable + Michael Cantu, Capital $12,000 + $4,600 $1,560 + $9,600 $24,000 = $6,200 + $45,560 During July, the following occurred: July 1 Cantu invested $20,000 cash in the business. 1 Rented office space and paid the month's rent of $1,000. 1 Purchased sound system equipment for $8,000 by paying $3,000 in cash and agreeing to pay the balance in 30 days. 6 Purchased office supplies by paying $1,000 cash. 8 Provided DJ services for three weddings and immediately collected $4,400 in total for completing the services. 10 Purchased $7,600 of projectors and screens on credit. 15 Completed DJ services for a customer on credit in the amount of $4,800. 17 Purchased $3,840 of office supplies on credit. 23 Paid for the event equipment purchased on July 10. 25 Billed a large corporate customer $6,000 for DJ services and $4,000 for the rental of event equipment; the balance is due in 30 days. 28 Received $4,800 for the work completed on July 15. 31 Paid DJ wages of $4,500. 31 Paid the monthly utility bills of $1,700. 31 Cantu withdrew $2,400 cash from the business to pay personal expenses.