Instructions The unadjusted trial balance of PS Music as of July 31, 2018, along with the adjustment data for the two months ended July 31, 2018, are shown in Chapter 3. Based upon the adjustment data, the following adjusted trial balance was prepared: PS Music ADJUSTED TRIAL BALANCE July 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 9,945.00 2 Accounts Receivable 4,150.00 3 Supplies 275.00 4 Prepaid Insurance 2,475.00 Office Equipment 7,500.00 Accumulated Depreciation Office Equipment 50.00 8,350.00 7 Accounts Payable 8 Wages Payable 140.00 9 Unearned Revenue 3,600.00 10 Common Stock 9,000.00 11 Dividends 1,750.00 12 Fees Earned 21,200.00 13 Wages Expense 2,940.00 14 Office Rent Fynence 75500 14 Office Rent Expense 2,550.00 15 Equipment Rent Expense 1,375.00 16 Utilities Expense 1,215.00 17 Music Expense 3,610.00 18 Advertising Expense 1,500.00 925.00 19 Supplies Expense 20 Insurance Expense 225.00 21 Depreciation Expense 50.00 22 Miscellaneous Expense 1,855.00 23 Totals 42,340.00 42,340.00 Required: 1. (Optional) Using the data from Chapter 3, prepare an end-of-period spreadsheet on a sheet of paper or using spreadsheet software. 2. Prepare an income statement, a retained earnings statement, and a balance sheet." 3. A. Journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles. B. Post the closing entries. The income summary account is #34 in the ledger of PS Music. Indicate closed accounts by inserting a 0 (zero) in either of the Balance columns opposite the closing entry. No entry is required in the item column. 4. Prepare a post-closing trial balance. For guidance in completing the financial statements, be sure to read the instructions above each statement carefully, CHART OF ACCOUNTS PS Music General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 14 Supplies EXPENSES 15 Prepaid Insurance 50 Wages Expense 17 Office Equipment 51 Office Rent Expense 18 Accumulated Depreciation Office Equipment 52 Equipment Rent Expense 53 Utilities Expense LIABILITIES 54 Music Expense 21 Accounts Payable 55 Advertising Expense 22 Wages Payable 56 Supplies Expense 23 Unearned Revenue 57 Insurance Expense 58 Depreciation Expense EQUITY 59 Miscellaneous Expense 31 Common Stock 32 Retained Earnings 33 Dividends 34 Income Summary Labels Cash flows from financing activities Cash flows from investing activities Cash flows from operating activities Current assets Current liabilities Expenses For the Two Months Ended July 31, 2018 July 31, 2018 Property, plant, and equipment Amount Descriptions Change in retained earnings Net decrease in cash during June and July Net increase in cash during June and July Net income Net loss Retained earnings, June 1, 2018 Retained earnings, July 31, 2018 Total assets Total current assets Total expenses Total liabilities Total liabilities and stockholders' equity Total property, plant, and equipment Total stockholders' equity JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Closing Entries 2 Jun. 1 Fees Earned 21,200.00 + Jun. 1 Income Summary 21,200.00 1 4 Supplies Expense 925.00 1 5 + Wages Expense 2,940.00 6 + Depreciation Expense 50.00 7 Office Rent Expense 2,550.00 t Equipment Rent Expense 1,375.00 1 9 Utilities Expense 1,215.00 t 10 Music Expense 3,610.00 f 11 Advertising Expense 1,500.00 1 12 + Insurance Expense 225.00 13 14 Miscellaneous Expense 1,855.00 t 15 Jul 31 Income Summary 4,955.00 + 16 Jul 31 Retained Earnings 4.955.00 1 17 Jul 31 Retained Earnings + 1,750.00 18 Jul 31 + Dividends 1,750.00 LEDGER Account: Cash Account No. 11 Account: Accounts Receivable Account No. 12 Account No. 14 Account No. 15 Account No. 17 Account No. 18 Account No. 21 Account: Supplies Account: Prepaid Insurance Account: Office Equipment Account: Accumulated Depreciation Office Equipment Account: Accounts Payable Account: Wages Payable Account: Unearned Revenue Account: Common Stock Account: Retained Earnings Account: Dividends Account No. 22 Account No. 23 Account No. 31 Account No. 32 Account No. 33 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 1 Balance 500.00 2 31 2 1,250.00 1,750.00 3 1,750.00 Account: Income Summary Account No. 34 Account: Fees Earned Account No. 41 Account: Wages Expense Account No. 50 Account: Office Rent Expense Account No. 51 Account No. 52 Account: Equipment Rent Expense Account: Utilities Expense Account: Music Expense Account No. 53 Account No. 54 LEDGER Account: Cash Account No. 11 Account: Accounts Receivable Account No. 12 Account No. 14 Account: Supplies Account: Prepaid Insurance Account No. 15 Account: Office Equipment Account No. 17 Account No. 18 Account: Accumulated Depreciation Office Equipment Account: Accounts Payable Account No. 21 Account No. 22 Account: Wages Payable Account: Unearned Revenue Account No. 23 Account: Common Stock Account No. 31 Account No. 32 Account: Retained Earnings Account: Dividends Account: Income Summary Account No. 33 Account No. 34 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 3 2 31 2,940.00 2,940.00 3 31 21,200.00 211,200.00 Account: Fees Earned Account No. 41 Account No. 50 Account: Wages Expense Account: Office Rent Expense Account No. 51 Account No. 52 Account: Equipment Rent Expense Account: Utilities Expense Account: Music Expense Account No. 53 Account No. 54 Account: Unearned Revenue Account No. 23 Account: Common Stock Account No. 31 Account: Retained Earnings Account No. 32 Account: Dividends Account No. 33 Account: Income Summary Account No. 34 Account: Fees Earned Account No. 41 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT Jul. 1 Balance 6,200.00 11 1,000.00 7,200.00 16 2,000.00 9,200.00 23 1 2 2 2 2 2,500.00 11,700.00 30 1,500.00 13,200.00 31 3,000.00 16,200.00 31 1,400.00 17,600.00 31 3,600.00 21,200.00 Account No. 50 Account: Wages Expense Account: Office Rent Expense Account: Equipment Rent Expense Account No. 51 Account No. 52 Account: Utilities Expense Account No. 53 Account No. 54 Account No. 55 Account: Music Expense Account: Advertising Expense Account: Supplies Expense Account: Insurance Expense Account No. 56 Account No. 57 Account: Dividends Account No. 33 Account: Income Summary Account No. 34 Account: Fees Earned Account No. 41 Account: Wages Expense Account No. 50 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 1 Balance 400.00 2 14 1 1,200.00 1,600.00 3 28 2 1,200.00 2,800.00 4. 31 3 140.00 2,940.00 5 Account No. 51 Account: Office Rent Expense Account: Equipment Rent Expense Account: Utilities Expense Account No. 52 Account No. 53 Account: Music Expense Account No. 54 Account: Fees Earned Account No. 41 Account: Wages Expense Account No. 50 Account: Office Rent Expense Account No. 51 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 1 Balance 800.00 2. 1 1,750.00 2,550.00 3 Account: Equipment Rent Expense Account No. 52 Account: Utilities Expense Account No. 53 Account: Music Expense Account No. 54 Account No. 55 Account: Advertising Expense Account: Supplies Expense Account No. 56 Account. Canned UML NO. Account: Wages Expense Account No. 50 Account: Office Rent Expense Account No. 51 Account: Equipment Rent Expense Account No. 52 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 1 Balance 675.00 2. 13 700.00 1,375.00 3 Account: Utilities Expense Account No. 53 Account: Music Expense Account No. 54 Account: Utilities Expense Account No. 53 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 1 Balance 300.00 2 27 2 915.00 1,215.00 3 Account: Music Expense Account No. 54 Account: Advertising Expense Account No. 55 Account: Supplies Expense Account No. 56 Account: Music Expense Account No. 54 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 1 Balance 1,590.00 2 21 2 620.00 2,210.00 3 31 2 1,400.00 3,610.00 4 Account No. 55 Account: Advertising Expense Account: Supplies Expense Account No. 56 Account: Advertising Expense Account No. 55 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 1 Balance 500.00 2 8 1 200.00 700.00 3 22 2 800.00 1,500.00 4 Account: Supplies Expense Account No. 56 Account: Insurance Expense Account No. 57 Account: Ng cxpense Acce Account: Supplies Expense Account No. 56 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT Jul. 1 Balance 180.00 31 3 745.00 925.00 3 Account: Insurance Expense Account No. 57 Account: Depreciation Expense Account No. 58 Account: Insurance Expense Account No. 57 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 31 3 225.00 225.00 2 Account: Depreciation Expense Account No. 58 Account: Insurance Expense Account No. 57 Account: Depreciation Expense Account No. 58 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT Jul. 31 3 50.00 50.00 2 Account: Miscellaneous Expense Account No. 59 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 1 Balance 415.00 2 4. 900.00 1,315.00 3 29 2 540.00 1,855.00 4 Instructions The unadjusted trial balance of PS Music as of July 31, 2018, along with the adjustment data for the two months ended July 31, 2018, are shown in Chapter 3. Based upon the adjustment data, the following adjusted trial balance was prepared: PS Music ADJUSTED TRIAL BALANCE July 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 9,945.00 2 Accounts Receivable 4,150.00 3 Supplies 275.00 4 Prepaid Insurance 2,475.00 Office Equipment 7,500.00 Accumulated Depreciation Office Equipment 50.00 8,350.00 7 Accounts Payable 8 Wages Payable 140.00 9 Unearned Revenue 3,600.00 10 Common Stock 9,000.00 11 Dividends 1,750.00 12 Fees Earned 21,200.00 13 Wages Expense 2,940.00 14 Office Rent Fynence 75500 14 Office Rent Expense 2,550.00 15 Equipment Rent Expense 1,375.00 16 Utilities Expense 1,215.00 17 Music Expense 3,610.00 18 Advertising Expense 1,500.00 925.00 19 Supplies Expense 20 Insurance Expense 225.00 21 Depreciation Expense 50.00 22 Miscellaneous Expense 1,855.00 23 Totals 42,340.00 42,340.00 Required: 1. (Optional) Using the data from Chapter 3, prepare an end-of-period spreadsheet on a sheet of paper or using spreadsheet software. 2. Prepare an income statement, a retained earnings statement, and a balance sheet." 3. A. Journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles. B. Post the closing entries. The income summary account is #34 in the ledger of PS Music. Indicate closed accounts by inserting a 0 (zero) in either of the Balance columns opposite the closing entry. No entry is required in the item column. 4. Prepare a post-closing trial balance. For guidance in completing the financial statements, be sure to read the instructions above each statement carefully, CHART OF ACCOUNTS PS Music General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 14 Supplies EXPENSES 15 Prepaid Insurance 50 Wages Expense 17 Office Equipment 51 Office Rent Expense 18 Accumulated Depreciation Office Equipment 52 Equipment Rent Expense 53 Utilities Expense LIABILITIES 54 Music Expense 21 Accounts Payable 55 Advertising Expense 22 Wages Payable 56 Supplies Expense 23 Unearned Revenue 57 Insurance Expense 58 Depreciation Expense EQUITY 59 Miscellaneous Expense 31 Common Stock 32 Retained Earnings 33 Dividends 34 Income Summary Labels Cash flows from financing activities Cash flows from investing activities Cash flows from operating activities Current assets Current liabilities Expenses For the Two Months Ended July 31, 2018 July 31, 2018 Property, plant, and equipment Amount Descriptions Change in retained earnings Net decrease in cash during June and July Net increase in cash during June and July Net income Net loss Retained earnings, June 1, 2018 Retained earnings, July 31, 2018 Total assets Total current assets Total expenses Total liabilities Total liabilities and stockholders' equity Total property, plant, and equipment Total stockholders' equity JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Closing Entries 2 Jun. 1 Fees Earned 21,200.00 + Jun. 1 Income Summary 21,200.00 1 4 Supplies Expense 925.00 1 5 + Wages Expense 2,940.00 6 + Depreciation Expense 50.00 7 Office Rent Expense 2,550.00 t Equipment Rent Expense 1,375.00 1 9 Utilities Expense 1,215.00 t 10 Music Expense 3,610.00 f 11 Advertising Expense 1,500.00 1 12 + Insurance Expense 225.00 13 14 Miscellaneous Expense 1,855.00 t 15 Jul 31 Income Summary 4,955.00 + 16 Jul 31 Retained Earnings 4.955.00 1 17 Jul 31 Retained Earnings + 1,750.00 18 Jul 31 + Dividends 1,750.00 LEDGER Account: Cash Account No. 11 Account: Accounts Receivable Account No. 12 Account No. 14 Account No. 15 Account No. 17 Account No. 18 Account No. 21 Account: Supplies Account: Prepaid Insurance Account: Office Equipment Account: Accumulated Depreciation Office Equipment Account: Accounts Payable Account: Wages Payable Account: Unearned Revenue Account: Common Stock Account: Retained Earnings Account: Dividends Account No. 22 Account No. 23 Account No. 31 Account No. 32 Account No. 33 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 1 Balance 500.00 2 31 2 1,250.00 1,750.00 3 1,750.00 Account: Income Summary Account No. 34 Account: Fees Earned Account No. 41 Account: Wages Expense Account No. 50 Account: Office Rent Expense Account No. 51 Account No. 52 Account: Equipment Rent Expense Account: Utilities Expense Account: Music Expense Account No. 53 Account No. 54 LEDGER Account: Cash Account No. 11 Account: Accounts Receivable Account No. 12 Account No. 14 Account: Supplies Account: Prepaid Insurance Account No. 15 Account: Office Equipment Account No. 17 Account No. 18 Account: Accumulated Depreciation Office Equipment Account: Accounts Payable Account No. 21 Account No. 22 Account: Wages Payable Account: Unearned Revenue Account No. 23 Account: Common Stock Account No. 31 Account No. 32 Account: Retained Earnings Account: Dividends Account: Income Summary Account No. 33 Account No. 34 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 3 2 31 2,940.00 2,940.00 3 31 21,200.00 211,200.00 Account: Fees Earned Account No. 41 Account No. 50 Account: Wages Expense Account: Office Rent Expense Account No. 51 Account No. 52 Account: Equipment Rent Expense Account: Utilities Expense Account: Music Expense Account No. 53 Account No. 54 Account: Unearned Revenue Account No. 23 Account: Common Stock Account No. 31 Account: Retained Earnings Account No. 32 Account: Dividends Account No. 33 Account: Income Summary Account No. 34 Account: Fees Earned Account No. 41 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT Jul. 1 Balance 6,200.00 11 1,000.00 7,200.00 16 2,000.00 9,200.00 23 1 2 2 2 2 2,500.00 11,700.00 30 1,500.00 13,200.00 31 3,000.00 16,200.00 31 1,400.00 17,600.00 31 3,600.00 21,200.00 Account No. 50 Account: Wages Expense Account: Office Rent Expense Account: Equipment Rent Expense Account No. 51 Account No. 52 Account: Utilities Expense Account No. 53 Account No. 54 Account No. 55 Account: Music Expense Account: Advertising Expense Account: Supplies Expense Account: Insurance Expense Account No. 56 Account No. 57 Account: Dividends Account No. 33 Account: Income Summary Account No. 34 Account: Fees Earned Account No. 41 Account: Wages Expense Account No. 50 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 1 Balance 400.00 2 14 1 1,200.00 1,600.00 3 28 2 1,200.00 2,800.00 4. 31 3 140.00 2,940.00 5 Account No. 51 Account: Office Rent Expense Account: Equipment Rent Expense Account: Utilities Expense Account No. 52 Account No. 53 Account: Music Expense Account No. 54 Account: Fees Earned Account No. 41 Account: Wages Expense Account No. 50 Account: Office Rent Expense Account No. 51 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 1 Balance 800.00 2. 1 1,750.00 2,550.00 3 Account: Equipment Rent Expense Account No. 52 Account: Utilities Expense Account No. 53 Account: Music Expense Account No. 54 Account No. 55 Account: Advertising Expense Account: Supplies Expense Account No. 56 Account. Canned UML NO. Account: Wages Expense Account No. 50 Account: Office Rent Expense Account No. 51 Account: Equipment Rent Expense Account No. 52 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 1 Balance 675.00 2. 13 700.00 1,375.00 3 Account: Utilities Expense Account No. 53 Account: Music Expense Account No. 54 Account: Utilities Expense Account No. 53 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 1 Balance 300.00 2 27 2 915.00 1,215.00 3 Account: Music Expense Account No. 54 Account: Advertising Expense Account No. 55 Account: Supplies Expense Account No. 56 Account: Music Expense Account No. 54 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 1 Balance 1,590.00 2 21 2 620.00 2,210.00 3 31 2 1,400.00 3,610.00 4 Account No. 55 Account: Advertising Expense Account: Supplies Expense Account No. 56 Account: Advertising Expense Account No. 55 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 1 Balance 500.00 2 8 1 200.00 700.00 3 22 2 800.00 1,500.00 4 Account: Supplies Expense Account No. 56 Account: Insurance Expense Account No. 57 Account: Ng cxpense Acce Account: Supplies Expense Account No. 56 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT Jul. 1 Balance 180.00 31 3 745.00 925.00 3 Account: Insurance Expense Account No. 57 Account: Depreciation Expense Account No. 58 Account: Insurance Expense Account No. 57 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 31 3 225.00 225.00 2 Account: Depreciation Expense Account No. 58 Account: Insurance Expense Account No. 57 Account: Depreciation Expense Account No. 58 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT Jul. 31 3 50.00 50.00 2 Account: Miscellaneous Expense Account No. 59 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 Jul. 1 Balance 415.00 2 4. 900.00 1,315.00 3 29 2 540.00 1,855.00 4