Chapter 2-Instruction #1

Save a copy of the spreadsheet by clicking on the "Spreadsheet" here. You will need this completed spreadsheet for the remaining parts of this Continuing Problem. Be sure to save the spreadsheet in a safe place for future use.

Continuing Problem Chapter 2-Instruction #1 Save a copy of the spreadsheet by clicking on the "Spreadsheet" here. You will need this completed spreadsheet for the remaining parts of this continuing Problem. Be sure to save the spreadsheet in a safe place for future use. PS Music's chart of accounts and the balance of accounts as of July 1, 2019 (all normal balances), are as follows: 11 Cash $6,200 12 Accounts Receivable $3,920 1,000 170 400 800 14 Supplies 15 Prepaid Insurance 17 Office Equipment 21 Accounts Payable 23 Unearned Revenue 31 Peyton Smith, Capital 32 Peyton Smith, Drawing 41 Fees Earned 50 Wages Expense 51 Office Rent Expense 52 Equipment Rent Expense 53 Utilities Expense 54 Music Expense 55 Advertising Expense 56 Supplies Expense 59 Miscellaneous Expense 1,590 500 250 - 4,000 500 415 Required: Review the spreadsheet and notice that the July 1, 2019, account balances have been entered in the appropriate balance column of the four-column accounts. The word Balance has been entered in the Item column, and a check mark (V) has been entered in the Posting Reference column. CONTINUING PROBLEM - The following ledger accounts appear below, in this order: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Office Equipment, Accumulated Depreciation - Office Equipment, Accounts Payable, Wages Payable, Unearned Revenue, Peyton Smith, Capital, Peyton Smith, Drawing, and Income Summary - Beginning balances from the textbook have already been entered. - The remaining accounts are found on the next page. An asterisk (*) will appear in the column to the right of an incorrect amount. LEDGERS - Balance Sheet accounts Cash Post Date Item Ref. Dr. Cr. Dr. Balance Cr. 2019 7/1 Balance 3,920 Accounts Receivable 12 Post Balance | Date Item Ref. Dr. Cr. Dr. Dalane cr. 7/1 Balance 1,000 Supplies Post Balance Date Item Ref. Dr. Cr. Dr. Cr. 7/1 Balance Prepaid Insurance Post Date Item R ef. Dr. Cr. Balance Dr. Carance c . Office Equipment Post Date Item Ref. Dr. Cr. Balance Dr. Cr. 18 Accumulated Depreciation - Office Equipment Post Date Item Ref. Dr. cr. Balance Dr. Accounts Payable 21 Post Balance Date Item Ref. Dr. Cr. Dr. 7/1 Balance 250 Wages Payable Post Balance Date Item Ref. Dr. Cr. Dr. Palanca Cr. Unearned Revenue Post Balance Date Item Ref. Dr. Cr. Dr. Dalane Cr. Post Balance Peyton Smith, Capital Date Item 7/1 Balance Ref. Dr. Cr. Dr. Cara Cr. 4,000 Post Balance Peyton Smith, Drawing Date Item 7/1 Balance Ref. Dr. Cr. Dr. Davance 500 LEDGERS - Income Statement accounts Fees Earned Date Item Post Ref. Balance Dr. em Dr. Cr- 7/1 Balance 6,200 Wages Expense Post Balance Date Item Ref. Dr. cr. Dr. 7/1 Balance 400 Wages Expense Post Balance Date - Item Ret Dr. cr. Dr. Dat 7/1 Balance 400 Office Rent Expense Balance Post Ref. Date Item Dr. Cr. Dr. Cr. 7/1 Balance 800 Balance Equipment Rent Expense Post Date Item 7/1 Balance Ref. Dr. Cr. Dr. Dalane 675 Utilities Expense Post Balance Date Item Rest Dr. cr. Dr. Balance 7/1 Balance 300 Music Expense Post Balance Date Item Rest Dr. cr. Dr. 7/1 Balance 1,590 Advertising Expense Post Ref. Date Item Dr. Cr. Balance Dr. Cr. 7/1 Balance 500 Miscellaneous Expense Post Date Item Ref. Dr. Cr. Balance Dr. warance ce 7/1 Balance 415 Continuing Problem Chapter 2-Instruction #2 The following transactions were completed by PS Music during July, the second month of the business's operations: Analyze and journalize each transaction in the two-column journal below. Include Posting References, using the account numbers in your spreadsheet. If an amount box does not require an entry, leave it blank. July 1: Peyton Smith made an additional investment in PS Music by depositing $5,000 in PS Music's checking account. Credit Account Cash Peyton Smith, Capital Post. Ref. 11 31 Debit 5,000 5 ,000 July 1: Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, $1,750. Credit Account Office Rent Expense V Cash Post. Ref. 51 11 Debit 1,750 1,750 July 1: Paid a premium of $2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. Credit Account Prepaid Insurance Cash Post. Ref. 15 11 Debit 2,700 2 ,700 July 2: Received $1,000 cash from customers on account. Credit Account Cash Accounts Receivable Post. Ref. 11 12 Debit 1,000 0 1,000 July 3: On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600. Any additional hours beyond 80 will be billed to KXMD at $40 per hour. In accordance with the contract, Peyton received $7,200 from KXMD as an advance payment for the first two months. Account Credit Post. Ref. 11 23 Debit 7,200 Cash Unearned Revenue V 7,200 July 3: Paid $250 to creditors on account Credit Account Accounts Payable Cash V Post. Ref. 21 11 Debit 250 C 250 July 4: Paid an attorney $900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) Credit Account Miscellaneous Expense v Cash Post. Ref. 59 11 Debit 9 00 0 L 900 July 5: Purchased office equipment on account from Office Mart, $7,500. Credit Account Office Equipment Accounts Payable Post. Ref. 17 21 Debit 7,500 C 7,500 July 8: Paid for a newspaper advertisement, $200. Credit Account Advertising Expense v Cash Post. Ref. 55 11 Debit 200 200 July 11: Received $1,000 for serving as a disc jockey for a party. Credit Account Cash Fees Earned Post. Ref. 11 41 Debit 1,000 1,000 July 13: Paid $700 to a local audio electronics store for rental of digital recording equipment. Credit Account Equipment Rent Expense v | Cash Post. Ref. 52 11 D Debit 700 700 July 14: Paid wages of $1,200 to receptionist and part-time assistant. Credit Account Wages Expense V | Cash Post. Ref. 50 11 Debit 1,200 1 ,200 July 16: Received $2,000 for serving as a disc jockey for a wedding reception. Credit Account Cash Fees Earned v Post. Ref. 112 41 Debit ,000 2,000 July 18: Purchased supplies on account, $850. Credit Account Supplies Accounts Payable Post. Ref. 14 21 Debit 850 850 July 21: Paid $620 to Upload Music for use of its current music demos in making various music sets. Account Music Expense V Cash Post. Ref. 54 11 Debit 620 D Credit C 620 July 22: Paid $800 to a local radio station to advertise the services of PS Music twice daily for the remainder of Credit Account Advertising Expense v Cash Post. Ref. 5 5 11 Debit 800 800 July 23: Served as disc jockey for a party for $2,500. Received $750, with the remainder due August 4, 2019. Credit Account Cash Accounts Receivable V Post. Ref. Debit 11750 12 1,750 41 Fees Earned 2,500 July 27: Paid electric bill, $915. Account Utilities Expense V Cash Post. Ref. 53 11 Debit 915 Credit I 915 July 28: Paid wages of $1,200 to receptionist and part-time assistant. Credit Account Wages Expense Cash Post. Ref. 50 11 Debit 1,200 1,200 July 29: Paid miscellaneous expenses, $540. Account Credit Miscellaneous Expense Cash Post. Ref. 59 11 Debit 5 40 - 540 July 30: Served as a disc jockey for a charity ball for $1,500. Received $500, with the remainder due on August 9, 2019. Credit Account Cash Accounts Receivable Fees Earned - Post. Ref. 11 12 41 Debit 500 ,000 1 1,500 July 31: Received $3,000 for serving as a disc jockey for a party. Account Cash Fees Earned Post. Ref. 11 41 Debit 3,000 Credit I 3,000 July 31: Paid $1,400 royalties (music expense) to National Music Clearing for use of various artists' music during July. Credit Account Music Expense v Cashv Post. Ref. 54 11 1 Debit ,400 C 1,400 July 31: Withdrew $1,250 cash from PS Music for personal use Credit Account Peyton Smith, Drawing Cash V Post. Ref. Debit 32 1,250 111 1,250