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 $350. 2 Collected $6,800 in advance for singing lessons to be delivered in August. 3 Collected $3,400 for teaching singing lessons in July. 4 Paid $4,400 to rent her music studio for the month of July. 5 Paid $650 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 $1,000. Required: 1. Prepare journal entries to record the July transactions. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 Record purchase of supplies on account; $350. Required: 1. Prepare journal entries to record the July transactions. View transaction list Journal entry worksheet Record purchase of supplies on account; $350. Note: Enter debits before credits. Date General Journal Debit Credit July 01, 2020 2&3. Post the entries to the T-accounts. (Use the below format) Enter the balances brought forward from June 30, 2020: Cash (101) $7,400; Supplies (126) $1,650; Equipment (161) $9,400; Accounts Payable (201) $2,900; Unearned Teaching Revenue (233) $11,200; Taylor Smith, Capital (301) $4,400; Taylor Smith, Withdrawals (302) $14,400; Teaching Revenue (401) $50,200; Wages Expense (623) $28,450; and Rent Expense (640) $7,400. 101:Cash 126:Supplies Beg.Bal. Beg.Bal. End.Bal. E End.Bal. 161:Equipment 201:Accounts Payable Beg.Bal. Beg.Bal. End.Bal. End.Bal. Llu.Dai. 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 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
