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On January 1, Pulse Recording Studio (PRS) had the following account balances. Accounts Payable $ 8,400 Accounts Receivable 6,800 Accumulated DepreciationEquipment 6,600 Cash 3,640 Cash
On January 1, Pulse Recording Studio (PRS) had the following account balances.
Accounts Payable | $ | 8,400 |
Accounts Receivable | 6,800 | |
Accumulated DepreciationEquipment | 6,600 | |
Cash | 3,640 | |
Cash Equivalents | 1,620 | |
Common Stock | 10,200 | |
Deferred Revenue | 3,900 | |
Equipment | 30,900 | |
Notes Payable (long-term) | 12,400 | |
Prepaid Rent | 1,890 | |
Retained Earnings | 3,850 | |
Supplies | 500 | |
NEEDED ALL ENTRIES
Requirement
- General Journal
- General Ledger
- Trial Balance
- Income Statement
- Bank Reconciliation
- Balance Sheet
- Analysis
The following transactions occurred during January for all entries needed
- received $2,370 cash on 1/1 from customers on account for recording services completed in December.
- Wrote checks on 1/2 totaling $4,370 for amounts owed on account at the end of December.
- Purchased and received supplies on account on 1/3, at a total cost of $200.
- Completed $3,900 of recording sessions on 1/4 that customers had paid for in advance in December.
- Received $4,700 cash on 1/5 from customers for recording sessions started and completed in January.
- Wrote a check on 1/6 for $4,040 for an amount owed on the account.
- Converted $1,030 of cash equivalents into cash on 1/7.
- On 1/15, completed EFTs for $1,390 for employees salaries and wages for the first half of January.
- Received $2,970 cash on 1/31 from customers for recording sessions to start in February.
- Prepare journal entries for the January transactions. Review the 'General Ledger' and the unadjusted 'Trial Balance' Tabs to see the effect of the transactions on the account balances.
- Prepare journal entries for items (j)(n) from the bank reconciliation. j. The bank deducted $470 for an NSF check from a customer deposited on January 5. k. The check written January 6 has not cleared the bank, but the January 2 payment has cleared. l. The cash received and deposited on January 31 was not processed by the bank until February 1. m. The bank added $4 cash to the account for interest earned in January. n. The bank deducted $4 for service charges.
- Prepare to adjust journal entries on 1/31 in the 'General Journal' Tab. (these are shown as items 15-21). o. Depreciation for the month is $280. p. Salaries and wages totaling $1,300 have not yet been recorded for January 1631. q. Prepaid Rent will be fully used up by March 31. r. Supplies on hand at January 31 were $200. s. Received $200 invoice for January electricity charged on account to be paid in February but is not yet recorded. t. Interest on the promissory note of $26 for January has not yet been recorded or paid. u. Income tax of $2,000 on January income has not yet been recorded or paid.
- Review the adjusted 'Trial Balance' as of January 31.
- Prepare an income statement for the period ended January 31 in the 'Income Statement' Tab.
- Prepare a bank reconciliation in the 'Bank Reconciliation' Tab.
- Prepare a classified balance sheet as of January 31 in the 'Balance Sheet' Tab.
- Using the information from the requirements above, complete the 'Analysis' tab.
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