Comprehensive Problem} Western Sound Studios records and masters audio tapes of popular artists in live concerts. The

Question:

Comprehensive Problem}
Western Sound Studios records and masters audio tapes of popular artists in live concerts. The performers use the tapes to prepare "live" albums, CDs, and MP3s. The following account balances were available at the beginning of 2018 :

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During 2018, the following transactions occurred (the events described below are aggregations of many individual events):

a. Taping services in the amount of $\$ 994,000$ were billed.

b. The accounts receivable at the beginning of the year were collected.

c. In addition, cash for $\$ 983,000$ of the services billed in transaction $a$ was collected.

d. The rent payable for the building was paid. In addition, $\$ 48,000$ of building rental costs was paid in cash. There was no rent payable or prepaid rent at year-end.

e. The insurance payable on January 1 was paid. In addition, $\$ 4,000$ of insurance costs was paid in cash. There was no insurance payable or prepaid insurance at year-end.

f. Utilities expense of $\$ 56,000$ was incurred and paid in 2018 .
g. Salaries expense for the year was $\$ 702,000$. All $\$ 702,000$ was paid in 2018 .
$\mathrm{h}$. The interest payable at January 1 was paid. During the year, an additional $\$ 11,000$ of interest was paid. At year-end no interest was payable.
i. Income taxes for 2018 in the amount of $\$ 19,700$ were incurred and paid.
\section*{Required:}
1. Establish T-accounts for the accounts listed above and enter the beginning balances. Use a chart of accounts to order the T-accounts.
2. Analyze each transaction. Journalize as appropriate. (Note: Ignore the date because these events are aggregations of individual events.)
3. Post your journal entries to the T-accounts. Add additional T-accounts when needed.
4. Use the ending balances in the T-accounts to prepare a trial balance.