On April 1, 2021, Beth established a corporation known as DJB, Inc. (Disk Jockey Beth). Using an extensive collection of CDs and tapes, Beth will serve as a disc jockey on a fee basis for weddings, college parties, and other events. During April and May, Beth entered into the following transactions:

April	1	April 1. Deposited $7,000 in a checking account in the name of DJB in exchange for capital stock.
	2	Received $2,000 from a local radio station for serving as the guest disc jockey for April.
	2	Agreed to share office space with a local real estate agency, Folsom Realty. DJB will pay one-fourth of the rent. In addition, DJB agreed to pay a portion of the salary of the receptionist and to pay one fourth of the utilities. Paid $1,000 for the rent of the office.
	4	Purchased supplies (blank cassette tapes, poster board, extension cords, etc.) from Rockne Office Supply Co. for $350. Agreed to pay $100 within 10 days and the remainder by May 3, 2021.
	6	Paid $600 to a local radio station to advertise the services of DJB twice daily for two weeks.
	8	Paid $650 to a local electronics store for renting digital recording equipment.
	12	Paid $200 (music expense) to Rocket Music for the use of its current music demos to make various music sets.
	13	Paid Rockne Office Supply Co. $100 on account.
	16	Received $150 from a dentist for providing two music sets for the dentist to play for her patients.
	22	Served as disc jockey for a wedding party. The father of the bride agreed to pay $1,200 the 1st of May.
	25	Received $500 from a friend for serving as the disc jockey for a cancer charity ball hosted by the local hospital.
	29	Paid $240 (music expense) to Score Music for the use of its library of music demos.
	30	Received $900 for serving as disc jockey for a local club's monthly dance.
	30	Paid Folsom Realty $400 for DJB's share of the receptionist's salary for April.
	30	Paid Folsom Realty $300 for DJB's share of the utilities for April.
	30	Determined that the cost of supplies on hand is $170. Therefore, the cost of supplies used during the month was $180.
	30	Paid for miscellaneous expenses, $150.
	30	Paid $500 royalties (music expense) to Federated Clearing for use of various artists' music during the month.
	30	Paid dividends of $250.
May	1	Beth made an additional investment in DJB by depositing $3,000 in DJB's checking account, receiving capital stock in exchange.
	1	Instead of continuing co share office space with a local real estate agency, Beth decided to rent office space near a local music store. Paid rent for May, $1,600.
	1	Paid a premium of $3,360 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a two-year period.
	2	Received $1,200 on account.
	3	On behalf of DJB, Beth signed a contract with a local radio station, KPRG, to provide guest spots for the next three months. The contract requires DJB to provide a guest disc jockey for 80 hours per month for a monthly fee of $2,400. Any additional hours beyond 80 will be billed to KPRG at $40 per hour. In accordance with the contract, Beth received $4,800 from KPRG as an advance payment for the first two months.
	3	Paid $250 on account.
	4	Paid an attorney $150 for reviewing the May 3rd contract with KPRG. (Record as Miscellaneous Expense.)
	5	Purchased office equipment on account from One-Stop Office Mart, $5,000.
	8	Paid for a newspaper advertisement, $200.
	11	Received $600 for serving as a disc jockey for a college fraternity party.
	13	Paid $500 to a local audio electronics store for rental of digital recording equipment.
	14	Paid wages of $1,200 to receptionist and part-time assistant.
	16	Received $1,100 for serving as a disc jockey for a wedding reception.
	18	Purchased supplies on account, $750.
	21	Paid $240 to Rocket Music for use of its current music demos in making various music sets.
	22	Paid $500 to a local radio station to advertise the services of DJB twice daily for the remainder of May.
	23	Served as disc jockey for a party for $1,560. Received $400, with the remainder due June 4, 2021.
	27	Paid electric bill, $560.
	28	Paid wages of $1,200 to receptionist and part-time assistant.
	29	Paid miscellaneous expenses, $170.
	30	Served as a disc jockey for a charity ball for $1,200. Received $600, with the remainder due on June 9, 2021.
	31	Received $2,000 for serving as a disc jockey for a party.
	31	Paid $600 royalties (music expense) to Federated Clearing for use of various artists' music during May.
	31	Paid dividends, $2,000.

1. Analyze and journalize each transaction for April and May in a two-column journal, omitting journal entry explanations.
2. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting.
3. Prepare a trial balance as of May 31, 2021.

The data needed to determine adjustments for the two-month period ending May 31, 2021, are as follows:

1. During May, DJB provided guest disc jockeys for KPRG for a total of 110 hours. For information on the amount of the accrued revenue to be billed to KPRG, see the contract described in the May 3, 2021 transaction.
2. Supplies on hand at May 31, $170.
3. The balance of the prepaid insurance account relates to the May 1, 2021 transaction at the end of Chapter 2.
4. Depreciation of the office equipment is $100.
5. The balance of the unearned revenue account relates to the contract between DJB and KPRG, described in the May 3, 2021 transaction.
6. Accrued wages as of May 31, 2021, were $130.

1. Prepare adjusting journal entries. You will need the following additional accounts:

18 Accumulated Depreciation-Office Equipment

22 Wages Payable

57 Insurance Expense

58 Depreciation Expense

2. Post the adjusting entries, inserting balances in the accounts affected.
3. Prepare a worksheet.
4. Prepare a single-step income statement, statement of retained earnings, and a classified balance sheet for the two-month period ending May 31, 2021.
5. Prepare and post closing entries.
6. Prepare a post-closing trial balance.