• Peyton Smith enjoys listening to all types of music and owns countless CDs. Over the years, Peyton has gained a local reputation for knowledge of music from classical to rap and the ability to put together sets of recordings that appeal to all ages.
• During the last several months, Peyton served as a guest disc jockey on a local radio station. In addition, Peyton has entertained at several friends' parties as the host deejay.
• On June 1, 2018, Peyton established a corporation known as PS Music. Using an extensive collection of music MP3 files, Peyton will serve as a disc jockey on a fee basis for weddings, college parties, and other events. During June, Peyton entered into the following transactions:

June 1

Deposited $4,000 in a checking account in the name of PS Music in exchange for common stock.

2

Received $3,500 from a local radio station for serving as the guest disc jockey for June.

2

Agreed to share office space with a local real estate agency, Pinnacle Realty. PS Music will pay one-fourth of the rent. In addition, PS Music agreed to pay a portion of the wages of the receptionist and to pay one-fourth of the utilities. Paid $800 for the rent of the office.

4

Purchased supplies from City Office Supply Co. for $350. Agreed to pay $100 within 10 days and the remainder by July 5, 2018.

6

Paid $500 to a local radio station to advertise the services of PS Music twice daily for two weeks.

8

Paid $675 to a local electronics store for renting digital recording equipment.

12

Paid $350 (music expense) to Cool Music for the use of its current music demos to make various music sets.

13

Paid City Office Supply Co. $100 on account.

16

Received $300 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 $1,000 in July.

25

Received $500 for serving as the disc jockey for a cancer charity ball hosted by the local hospital.

29

Paid $240 (music expense) to Galaxy Music for the use of its library of music demos.

30

Received $900 for serving as PS disc jockey for a local club's monthly dance.

30

Paid Pinnacle Realty $400 for PS Music's share of the receptionist's wages for June.

30

Paid Pinnacle Realty $300 for PS Music's share of the utilities for June.

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, $415.

30

Paid $1,000 royalties (music expense) to National Music Clearing for use of various artists' music during the month.

30

Paid dividends, $500.