Chapter 3-Instruction #1

The unadjusted trial balance for PS Music as of July 31, 2014 is as follows: Step 1. Journalize and post the adjusting entries. Step 2. Prepare an adjusted trial balance. Step 3. Prepare (3 of) the financial statements: Income Statement, State of Owner's Equity, Balance Sheet Step 4. Journalize and post the closing entries. Step 5 Prepare a closing trial balance.

Enter the following transactions on Page 2 of the two-column journal. July 16. Received $2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, $850. 21. Paid $620 to Upload Music for use of its current music demos in making vari- ous music sets. 22. Paid $800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23. Served as disc jockey for a party for $2,500. Received $750, with the remainder due August 4, 2014. 27. Paid electric bill, $915. 28. Paid wages of $1,200 to receptionist and part-time assistant. 29. Paid miscellaneous expenses, $540. 30. Served as a disc jockey for a charity ball for $1,500. Received $500, with the remainder due on August 9, 2014. 31. Received $3,000 for serving as a disc jockey for a party. 31. Paid $1,400 royalties (music expense) to National Music Clearing for use of various artists' music during July. 31. Paid dividends of $1,250. PS Music's chart of accounts and the balance of accounts as of July 1, 2014 Call normal balances), are as follows: $3,920 1,000 170 $6,200 400 800 675 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Insurance 17 Office Equipment 21 Accounts Payable 23 Unearned Revenue 31 Capital Stock 33 Dividends 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 250 300 1,590 500 180 4,000 500 415 Instructions 1. Enter the July 1, 2014, account balances in the appropriate balance column of a four- column account. Write Balance in the Item column, and place a check mark in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate bal- ance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 2014. The unadjusted trial balance that you prepared for PS Music at the end of Chapter 2 should appear as follows: PS Music Unadjusted Trial Balance July 31, 2018 Account No. Debit Balances Credit Balances 9,945 2,750 1,020 2,700 7,500 8,350 7,200 9,000 1,750 Cash Accounts Receivable.. Supplies Prepaid Insurance.. . Office Equipment Accounts Payable Unearned Revenue ........ Common Stock ... Dividends Fees Earned.......... Wages Expense.. Office Rent Expense.... Equipment Rent Expense..... Utilities Expense..... Music Expense.............. Advertising Expense.. . Supplies Expense....... Miscellaneous Expense........ 16,200 2,800 2,550 1,375 1,215 3,610 1,500 180 1855 40,750 40,750