Assets $ $ Current assets (select) (select) select) select) (select) (select) Total current assets Property, plant and equipment select) (select) (select) (select) (select) (select) Total property, plant and equipment Total assets Liabilities Current liabilities (select) (select) Liabilities Current liabilities select) (select) (select) (select) 'select) (select) Total current liabilities Long-term liabilities (select) (select) select) (select) (select) 'select) Total liabilities Equity select) Kselect) select) 'select) Assume it is currently June 30, 2021. You are working for the temporary accounting employment agency known as Temporight. Today you have been asked to work at Julie Yard's School of Music, a new music school that operates in inner city Denver and is owned by Julia Frank. Your task here is to complete the accounting cycle for Julie Yard's School of Music for the month of June 2021. To assist you in this task, Julia tells you to read the accounting policies and procedures of the business. Note that you will be required to follow these policies and procedures when completing the accounts for Julie Yard's School of Music. Accounting policies a. Business operations: Julie Yard's School of Music is set up as a sole proprietorship based in Denver with Julia Frank as the sole owner. The business derives its main source of revenue from providing music lessons to students. All music lessons are provided by instructors who are employed on a part-time basis. Since it took a few days to set up the business, music lessons did not start until the end of the first week. Lessons can be conducted on any day of the week, including weekends. Instructors receive their wages every two weeks, after they have conducted the lessons. Julia handles all of the administrative tasks but she does not receive a salary for her work. Instead, from time to time she makes withdrawals of capital from the business. b. Accounting cycle: The business adopts a monthly accounting cycle. C. Revenue recognition: The business recognizes revenue when music lessons are provided to customers. Any revenue received in advance is recorded as a liability. d. Sales tax: Julia has advised you to ignore the effect of sales tax. [ASIDE: This is an assumption to make the practice set easier for you to complete. In the real world, sales tax cannot be ignored.] e. Prepayments: The business has a policy of recording prepayments, including office supplies, as assets. At the end of the month, adjustments are made to the relevant accounts to recognize the expense incurred during the accounting period. f. Property, plant and equipment: Property, plant and equipment items are depreciated over their estimated useful life using the straight line method to calculate the depreciation charge. Depreciation is allocated on a monthly basis. g. Long-term liabilities: The business obtained an interest only loan of $198,000 from Earth Bank on June 1, 2021 at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2021 and the principal on the loan is due on June 1, 2024. h. Withdrawals: Withdrawals from the business by Julia Frank are recorded using the Withdrawals account. Accounting procedures Julie Yard's School of Music adopts a manual accounting system and uses the general journal for the recording of individual transactions. These transactions are journalized at the end of the month with the date of each entry being the actual transaction date. After all transactions have been recorded in the general journal, the next step is to post transactions from the general journal to the general ledger with the posting date being the date when each of these transactions occurred. Assets $ $ Current assets (select) (select) select) select) (select) (select) Total current assets Property, plant and equipment select) (select) (select) (select) (select) (select) Total property, plant and equipment Total assets Liabilities Current liabilities (select) (select) Liabilities Current liabilities select) (select) (select) (select) 'select) (select) Total current liabilities Long-term liabilities (select) (select) select) (select) (select) 'select) Total liabilities Equity select) Kselect) select) 'select) Assume it is currently June 30, 2021. You are working for the temporary accounting employment agency known as Temporight. Today you have been asked to work at Julie Yard's School of Music, a new music school that operates in inner city Denver and is owned by Julia Frank. Your task here is to complete the accounting cycle for Julie Yard's School of Music for the month of June 2021. To assist you in this task, Julia tells you to read the accounting policies and procedures of the business. Note that you will be required to follow these policies and procedures when completing the accounts for Julie Yard's School of Music. Accounting policies a. Business operations: Julie Yard's School of Music is set up as a sole proprietorship based in Denver with Julia Frank as the sole owner. The business derives its main source of revenue from providing music lessons to students. All music lessons are provided by instructors who are employed on a part-time basis. Since it took a few days to set up the business, music lessons did not start until the end of the first week. Lessons can be conducted on any day of the week, including weekends. Instructors receive their wages every two weeks, after they have conducted the lessons. Julia handles all of the administrative tasks but she does not receive a salary for her work. Instead, from time to time she makes withdrawals of capital from the business. b. Accounting cycle: The business adopts a monthly accounting cycle. C. Revenue recognition: The business recognizes revenue when music lessons are provided to customers. Any revenue received in advance is recorded as a liability. d. Sales tax: Julia has advised you to ignore the effect of sales tax. [ASIDE: This is an assumption to make the practice set easier for you to complete. In the real world, sales tax cannot be ignored.] e. Prepayments: The business has a policy of recording prepayments, including office supplies, as assets. At the end of the month, adjustments are made to the relevant accounts to recognize the expense incurred during the accounting period. f. Property, plant and equipment: Property, plant and equipment items are depreciated over their estimated useful life using the straight line method to calculate the depreciation charge. Depreciation is allocated on a monthly basis. g. Long-term liabilities: The business obtained an interest only loan of $198,000 from Earth Bank on June 1, 2021 at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2021 and the principal on the loan is due on June 1, 2024. h. Withdrawals: Withdrawals from the business by Julia Frank are recorded using the Withdrawals account. Accounting procedures Julie Yard's School of Music adopts a manual accounting system and uses the general journal for the recording of individual transactions. These transactions are journalized at the end of the month with the date of each entry being the actual transaction date. After all transactions have been recorded in the general journal, the next step is to post transactions from the general journal to the general ledger with the posting date being the date when each of these transactions occurred