Angela Mica operates the Mica Dance Studio. On June 1, the business's general ledger contained the following information:

The following transactions occurred during the month of June:

1 Paid June rent for practice studio, \(\$ 875\).

2 Paid June piano rental, \(\$ 240\) (Rent Expense).

3 Collected \(\$ 5,320\) from students on account.

4 Borrowed \(\$ 1,500\) and signed a promissory note payable due in six months.

5 Billed students for June instructional fees, \(\$ 7,500\).

6 Paid interest for June on notes payable, \(\$ 30\).

7 Paid \(\$ 375\) for advertising ballet performances.

8 Paid costume rental, \(\$ 550\) (Rent Expense).

9 Collected \$2,100 admission fees from ballet performances given during the month.

10 Paid \(\$ 480\) owed on account.

11 Received invoice for June utilities, to be paid in July, \(\$ 510\).

12 Paid stockholders \(\$ 900\) cash as a dividend.

13 Purchased piano for \(\$ 5,500\) cash, to be used in business starting in July.

Required

a. Set up accounts for the general ledger with June 1 balances and enter the beginning balances. Also provide the following accounts: Piano; Dividends; Instructional Fees Earned; Performance Revenue; Rent Expense; Utilities Expense; Advertising Expense; and Interest Expense. Record the listed transactions in the accounts.

b. Prepare a trial balance as of June 30.

c. Prepare an income statement for the month of June.

d. Prepare a statement of stockholders' equity for the month of June.

e. \(\quad\) Prepare a balance sheet as of June 30.

f. Prepare closing entries.

g. Prepare a post-closing trial balance.

Transcribed Image Text:

Cash.... Accounts receivable. $ 5,930 Accounts payable.. $ 480 8,400 Notes payable... 3,980 Common stock. 7,870 Retained earnings 2,000 $14,330 $14,330