Chapter 1 Continuing Problem eflook Continuing Problem Chapter 1, Part 1 Instructions Accounting Equation Grid Instructions Peyton Smith enjoys listening to all types of music and owns countless CDs. Over the years, Peyton has gained a local reputation for knowledge of music from classical to rap and the ability to put together sets of recordings that appeal to all ages. During the last several months, Peyton served as a guest disc jockey on a local radio station. In addition, Peyton has entertained at several friends parties as the host deejay. On June 1, 2010, Peyton established a corporation known as PS Music. Using an extensive collection of music MP3 fies, Peyton will serve as a disc jockey on a fee basis for weadings, college parses and other events. During June, Peyton entered into the following transactions Jun 1 Deposited $4,000 in a checking account in the name of PS Music in exchange for common stock 2 Received $3.500 Nom a local radio station for serving as the guest disc jockey for June 2 4 Agreed to share office space with a local real estate agency, Pinnacle Realty PS Music will pay one- fourth of the rent. In addition, PS Music agreed to pay a portion of the wages of the receptionist and to pay one-fourth of the utities. Paid $800 for the rent of the offce. Purchased supplies from City Office Supply Co. for $350. Agreed to pay $100 within 10 days and the remainder by July 5, 2016. 6 Paid $500 to a local radio station to advertise the services of PS Music twice daily for two weeks 8. Paid $675 to a local electronics store for renting digital recording equipment.