2.7

Western Sound Studios records and masters audio recordings of popular artists in live concerts. The performers use the recordings to prepare "live" songs for download. The following account balances were available at the beginning of the year: During the year, the following transactions occurred (the events described below are aggregations of many individual events): a. Recording services in the amount of 5994,000 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 buliding rental costs was paid in cash, There was no rent payable or prepaid remt at year-end. e. The insurance payable on January 1 was paid. In addition, 54,000 of insarance costs was paid in cash. There was no insurance payable or prepaid insurance at yearend. f. Utilities expense of $56,000 was incurred and paid during the yeac. 9. Salaries expense for the year was $702,000. All $702,000 was paid during the year. 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. L. Income taxes for the year in the amount of $19,700 were incurred and paid. 1. Scrol down to the T-accounts. The account tbe for each has been provided. Using the data provided, enter the opplicable begineing balances 2. Anaivze each transaction. Journal le at aoersbiate. If an amount box does not require an entry, leave it blank. (Note: Ignore the date since thest evenes are apgregations of individual events.) 3. Post your joumal entries to the appropriate Taceounts. If an ending baiance is zero, emter " 0 ", 4. Use the ending balances in the T-accounts to prepare a trial balance. If an amount box does not require an entry, leave it blank. Western Sound Studios Trial Balance December 31