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. Account Post. Ref. Debit Credit Cash v 5,000 11 Peyton Snith, Capital v 31 V 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. Account Post. Ref. Debit Credit office Rent Expense v 51 1,750 Cash v 11 1,750 July 11 Paid a premium of $2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. Account Post. Ref. Dehit Credit Check My Work 0 more Check My Work uses remaining Previous Next mprehensive insurance policy covering liability, thert, and tire. The policy covers a one-year perod. Account Post. Ref. Debit Credit Prepaid Insurance v 15 V 2,700 Cash v 11 2,700 July 2: Received $1,000 cash from customers on account. Account Post. Ref. Debit Credit Cash v 11 V 1,000 v Accounts Receivable v 12 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. Post. Ref. Debit Credit Account 7,200 Cash 11 7,200 v Unearned Revenue v 23 July 4: Paid an attorney $900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) Account Post. Ref. Debit Credit Miscellaneous Expense v 59 V 900 V Cash v 11 900 July 5: Purchased office equipment on account from Office Mart, $7,500. Account Post. Ref. Debit Credit Office Equipment v 17 V 7,500 Accounts Payable v 21 V 7,500V Julv R: Paid for a newsnaner advertisement. $200 ( Pre 0 more Check My Work uses remaining. Check My Work All work saved. Save and Exit Submit A PART.1 July 3: Paid $250 to creditors on account. PART2 Account Post. Ref. Debit Credit PART3 Accounts Payable v 21 V 250 PARTA Cash v 11 v 250 July 4: Paid an attorney $900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) Account Post. Ref. Debit Credit Miscellaneous Expense v 59 900 Cash 11 900 July S: Purchased office equipment on account from Office Mart, $7,500. Account Post. Ref. Debit Credit Office Equipment v 17 7,500 Accounts Payable v 21 7,500 Julv R: Paid for a nowenanar adurtieamanm 0 PART.1 July 8: Paid for a newspaper advertisement, $200. PART2 Account Post. Ref. Debit Credit PART.3 Advertising Expense v 55 200 v PART.4 Cash v 11 200 July 11: Received $1,000 for serving as a disc jockey for a party. Account Post. Ref. Debit Credit Cash v 11 1,000 Fees Earned v 41 1,000 July 13: Paid $700 to a local audio electronics store for rental of digital recording equipment. Account Post. Ref. Debit Credit Equipment Rent Expense v 52 700 Cash v 11 700 July 14: Paid wages of $1,200 to receptionist and part-time assistant. 01.PART.1 01.PART.2 Account Post. Ref. Debit Credit 01.PART.3 Wages Expense v 50 1,200 v Cash v 11 1,200 01.PART4 July 16: Received $2,000 for serving as a disc jockey for a wedding reception. Account Post. Ref. Debit Credit ash v 2,000 Fees Earned v 2,000 July 18: Purchased supplies on account, $850. Account Post. Ref. Debit Credit 850 V Supplies v Accounts Payable v 21 V 850 V July 21: Paid $620 to Upload Music for use of its current music demos in making various music sets. July 21: Paid $620 to Upload Music for use of its current music demos in making various music sets. Credit Post. Ref. Debit Account 54 V 620 Music Expense v 620 11 Cash v July 221 Paid $800 to a local radio station to advertise the services of PS Music twice dailly for the remainder of July. Credit Post. Ref. Debit Account 800 Advertising Expense v 800 11 V Cash v July 23: Served as disc jockey for a party for $2,500. Received $750, with the remainder due August 4, 2019. Credit Debit Post. Ref. Account 750 11 Cash v 1,750 12 Accounts Receivable v 2,500 41 Fees Earned July 27: Paid electric bill, $915. Account Post. Ref. Debit Credit Utilities Expense v 53 915 Cash v 11 V 915 July 28: Paid wages of $1,200 to receptionist and part-time assistant. Account Post. Ref. Debit Credit Wages Expense v 50 1,200 Cash v 11 1,200 July 29: Paid miscellaneous expenses, $540. Account Post. Ref. Debit Credit Miscellaneous Expense v 59 V 540 Cash v 11 540 July 30: Served as a disc jockey for a charity ball for $1,500. Received $500, with the remainder due on August 9, 2019. July 30: Served as a disc jockey for a charity ball for $1,500. Received $500, with the remainder due on August 9, 2019. Account Post. Ref. Debit Credit Cash v 11 500 Accounts Receivable v 12 1,000 Fees Earned v 41 V 1,500 July 31: Received $3,000 for serving as a disc jockey for a party. Account Post. Ref. Debit Credit Cash v 11 3,000 Fees Earned 41 3,000 July 31: Paid $1,400 royalties (music expense) to National Music Clearing for use of various artists' music during July. Account Post. Ref. Debit Credit Music Expense v 1,400 54 Cash v 11 V 1,400 July 31: Withdrew $1,250 cash from PS Music for personal use. Debit Credit Account Post. Ref. Peyton Smith, Drawing v 32 V 1,250 11 V 1,250 V Cash v Feedback Check My Work 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 $3,920 41 Fees Earned $6,200 12 Accounts Receivable 1,000 50 Wages Expense 400 14 Supplies 170 51 Office Rent Expense 800 15 Prepaid 1Insurance 52 Equipment Rent Expense 675 53 Utilities Expense 300 17- Office Equipment 250 54 Music Expense 1,590 Accounts Payable 21 500 Unearned Revenue 55 Advertising Expense 23 180 56 Supplies Expense 4,000 Peyton Smith, Capital 31 415 59 Miscellaneous Expense 500 Peyton Smith, Drawing 32 Required: 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 Review the Balance has been entered in the Item column, and a check mark (V) has been entered in the Posting Reference column. PS Music 01.PART.1 Unadjusted Trial Balance July 31, 2019 01.PART.2 Debit Balances Credit Balances -01.PART.3 Cash -01.PART.4 Accounts Receivable Supplies Prepaid Insurance Office Equipment Accounts Payable Unearned Revenue Peyton Smith, Capital Peyton Smith, Drawing Fees Earned Wages Expense Office Rent Expense Equipment Rent Expense Utilities Expense Music Expense Advertising Expense Supplies Expense Miscellaneous Expense Check My Work 2 more Check My Work uses remaining 4/4 items