Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q no 2: Tayler Smith is a singer who has experienced international success in her career. On May 1, 2017, Tayler started her business,

image text in transcribed

Q no 2: Tayler Smith is a singer who has experienced international success in her career. On May 1, 2017, Tayler started her business, "Glitter and Gold Studio" where she teaches singing. The following activities occurred during July, the third month operation: arks 30 July 1 Purchased supplies including sheet music on credit for $100. 2 Collected $4,000 in advance for singing lessons to be delivered in August. 3 Collected $2,000 for teaching singing lessons in July. 4 Paid $3,000 to rent her music studio for the month of July. 5 Paid $500 for supplies purchased on account last month. 15 Tayler Smith withdrew cash of $500 to do some personal shopping on the weekend. 20 Paid her assistant wages of $1,300. 31 Purchased new microphone equipment on credit for $300. Required: of M 1. Prepare journal entries to record the July transactions. 2. Set up the following general ledger accounts using T- accounts, entering the balances brought forward from June 30, 2017: Cash (101) $6,000; Supplies (126) $950; Equipment (161) $8,000; Accounts Payable (201) $1,500; Unearned Teaching Revenue (233) $9,800; Tayler Smith, Capital (301) $3,000; Tayler Smith, Withdrawals (302) $13,000; Teaching Revenue (401) $46,000; Wages Expense (623) $26, 350; and Rent Expense (640) $6,000. 3. Post the entries to the T-accounts; calculate the ending balance in each account. 4. Prepare a trial balance at July 31, 2017. 5. Use the trial balance to prepare an income statement and statement of changes in equity for the three months ended July 31, 2017, as well as a balance sheet at July 31, 2017.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Gail Fayerman

1st Canadian Edition

9781118774113, 1118774116, 111803791X, 978-1118037911

More Books

Students also viewed these Accounting questions

Question

Why is trend forecasting important to fashion businesses? LO.1

Answered: 1 week ago