Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Taylor Smith is a singer who has experienced international success in her career. On May 1, 2020, Taylor started her business, Glitter and Gold Studio,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Taylor Smith is a singer who has experienced international success in her career. On May 1, 2020, Taylor started her business, Glitter and Gold Studio, where she teaches singing. The following activities occurred during July, the third month of operations: 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 Taylor 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: 1. Prepare journal entries to record the July transactions View transaction list X 1 Record purchase of supplies on account; $100. 2 Record collection of $4,000 for August teaching revenue. 3 Record collection of $2,000 for July teaching revenue. 4 Record payment of July rent of $3,000. 5 Record payment of $500 for supplies purchased on account last month. bit Credit 6 Record withdrawal of $500 cash by Taylor Smith for personal use. 7 Record payment of wages of $1,300 Note : journal entry has been entered Record entry Clear entry View general journal 2&3. Post the entries to the T-accounts. (Use the below format) Enter the balances brought forward from June 30, 2020: Cash (101) $6,000; Supplies (126) $950; Equipment (161) $8,000: Accounts Payable (201) $1,500; Unearned Teaching Revenue (233) $9,800; Taylor Smith, Capital (301) $3.000; Taylor Smith, Withdrawals (302) $13,000; Teaching Revenue (401) $46,000; Wages Expense (623) $26,350; and Rent Expense (640) $6,000. 101:Cash 126: Supplies es Beg Bal Beg Bal End Bal End Bal 161:Equipment 201:Accounts Payable Beg Bal Beg Bal End Bal End Bal 233:Unearned Teaching Revenue 301:Taylor Smith, Capital 2&3. Post the entries to the T-accounts. (Use the below format) Enter the balances brought forward from June 30, 2020: Cash (101) $6,000; Supplies (126) $950; Equipment (161) $8,000: Accounts Payable (201) $1,500; Unearned Teaching Revenue (233) $9,800; Taylor Smith, Capital (301) $3.000; Taylor Smith, Withdrawals (302) $13,000; Teaching Revenue (401) $46,000; Wages Expense (623) $26,350; and Rent Expense (640) $6,000. 101:Cash 126: Supplies es Beg Bal Beg Bal End Bal End Bal 161:Equipment 201:Accounts Payable Beg Bal Beg Bal End Bal End Bal 233:Unearned Teaching Revenue 301:Taylor Smith, Capital End Bal. 233:Unearned Teaching Revenue 301:Taylor Smith, Capital Beg Bal. Beg Bal End.Bal. End Bal 302:Taylor Smith, Withdrawals 401:Teaching Revenue Beg Bal Beg Bal End.Bal. End bal. 623:Wages Expense 640:Rent Expense Beg Bal Beg Bal End.Bal. End Bal. 4. Prepare a trial balance at July 31, 2020. GLITTER AND GOLD STUDIO Trial Balance July 31, 2020 Debit Credit Totals 5. Use the trial balance to prepare an income statement and statement of changes in equity for the three months ended July 31, 2020, as well as a balance sheet at July 31, 2020 GLITTER AND GOLD STUDIO Income Statement For Three Months Ended July 31, 2020 Revenues Operating expenses Total operating expenses GLITTER AND GOLD STUDIO Statement of Changes in Equity For Three Months Ended July 31, 2020 Taylor Smith, capital, May 1 Total Taylor Smith, capital, July 31 GLITTER AND GOLD STUDIO Balance Sheet July 31, 2020 Assets Liabilities Total liabilities Equity Total assets Total liabilities and equity

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

Management Audit Maximizing Your Companys Efficiency And Effectiveness

Authors: John Nolan

1st Edition

0801975581, 978-0801975585

More Books

Students also viewed these Accounting questions