Aduke Zhawaki is a talented musician who runs a business teaching music and playing in gigs with a variety of other musicians. Her business is operated as a proprietorship, under the name A to Z Music, which has a December 31 year end. On November 30, 2021, the company's general ledger included the following accounts (all accounts have normal balances):

Journalize transactions, post, and prepare trial balance.

A. Zhawaki, capital $19,500

Rent expense $5,225

A. Zhawaki, drawings31,350

Service revenue47,075

Accounts payable4,235

Supplies1,450

Accounts receivable2,200

Telephone expense1,485

Cash2,965

Travel expense6,050

Equipment17,500

Unearned revenue825

Insurance expense3,410

December transactions were as follows:

Dec.1

Paid December rent on her studio space, $475.1

Purchased additional sound equipment for $3,500 from a friend who was going back to school to study accounting. The equipment was probably worth $5,000, but the friend needed the cash for tuition and was anxious to sell it. Paid $1,500 cash and promised to pay the remaining amount by December 5.3

Borrowed $2,500 cash from her parents and signed a note payable.4

Paid her friend the remaining amount owing on the December 1 transaction.4

Collected $1,800 from customers in payment of their accounts.7

Paid the $310 monthly insurance premium.8

Paid for $150 of supplies.10

Paid $2,130 of the accounts payable from November.15

Gave musical performances at two recitals, therefore providing services of $825. The customers had paid her in November. (Hint:In November, Aduke had recorded the $825 received in advance as a liability, Unearned Revenue. By performing at the recitals, she has "paid" this obligation.)20

Received $3,300 cash from students for music lessons provided in December.21

Paid her monthly telephone bill of $135.22

Billed customers $2,250 for providing music at several holiday parties.24

Withdrew $3,000 for personal use.29

Received $525 cash advance from a customer for a performance in January.30

Paid travel expenses of $695 for December in cash.31

Paid her parents $210. Of this amount, $10 is interest and the remainder is a principal payment on the note payable.

Instructions

a.Using T accounts, enter the November 30 balances in the ledger accounts.

b.Journalize the December transactions.

c.Post the December journal entries to the T accounts. Add new accounts if needed.

d.Prepare a trial balance at December 31, 2021.

Comment on A to Z Music's cash balance at December 31, 2021. What concerns and suggestions do you have for Aduke to consider in January?