Answer

Problem 2: Journal, Ledger & Trial Balance During the first month of operations (October 2021), Silver Entertainment Corporation, completed the following transactions: Oct. 1 The business received $35,000 cash. The corporation issued ordinary shares to the shareholders. 2 Borrowed $20,000 from the National Bank and signed a one-year note payable. 5 Purchased music equipment $10,000 in cash. 6 Entered into a contract with concert organizer. For every concert performance the company will receive a talent fee of $4,000. 7 Purchased supplies on account $500. 10 Received cash $8,000 for music performed to customers. 12 Provided music performances to various customers on account $5,000. 15 Paid salaries to employees $3,000. 18 Paid 50% of the amount due for the supplies on Oct. 7. 20 Collected partial payment from customers on account $3,000. 25 Paid the following expenses: rent $2,000, utilities $600 and newspaper advertising $400. 29 Paid dividends to shareholders $600. 31 Received advance payment $4,000 from customer for music performance to be held next month. CHART OF ACCOUNTS 11 Cash 31 Share Capital - Ordinary 12 Accounts Receivable 32 Dividends 13 Supplies 41 Service Revenue 17 Equipment 51 Salaries Expense 21 Accounts Payable 52 Utilities Expense 22 Notes Payable 53 Rent Expense 23 Unearned Service Revenue 54 Advertising Expense Instructions: (Use the provided answer sheets) 1. Journalize the above transactions. Explanation and posting reference are required. 2. Post to the ledger accounts. Posting reference is required. 3. Prepare the trial balance for the month ended October 31, 2021. Problem 2: Requirement #1 GENERAL JOURNAL Account Titles and Explanations Page 1 Credit Debit Date 2021 Ref Requirement #2 Posting to the LEDGERS CASH 11 Balance Date Explanation Ref. Debit Credit ACCOUNTS RECEIVABLE Explanation Ref. 12 Balance Date Debit Credit 13 SUPPLIES Ref. Date Explanation Debit Credit Balance EQUIPMENT Ref. 17 Balance Date Explanation Debit Credit ACCOUNTS PAYABLE Explanation Ref. 21 Balance Date Debit Credit NOTES PAYABLE Ref. 22 Balance Date Explanation Debit Credit UNEARNED SERVICE REVENUE Explanation Ref. Debit 23 Balance Date Credit SHARE CAPITAL - ORDINARY Explanation Ref. Debit 31 Balance Date Credit DIVIDENDS Ref. 32 Balance Date Explanation Debit Credit SERVICE REVENUE Explanation Ref. 41 Balance Date Debit Credit SALARIES EXPENSE Explanation Ref. 51 Balance Date Debit Credit UTILITIES EXPENSE Explanation Ref. 52 Balance Date Debit Credit 53 RENT EXPENSE Ref. Date Explanation Debit Credit Balance ADVERTTISING EXPENSE Explanation Ref. Debit 54 Balance Date Credit Requirement #3 Trial Balance Silver Entertainment Corporation Trial Balance October 31, 2021 Account Titles Debit Credit Account Number 11 12 13 17 21 22 23 31 32 41 Cash Accounts Receivable Supplies Equipment Accounts Payable Notes Payable Unearned Service Revenue Share Capital - Ordinary Dividends Service Revenue Salaries Expense Utilities Expense Rent Expense Advertising Expense TOTAL 51 52 53 54