The transactions completed by PS Music during June 2016 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the businesss operations:

Jul.1 Peyton Smith made an additional investment in PS Music in exchange for common stock by depositing $5,000 in PS Musics checking account.

1 Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, $1,750.

1 Paid a premium of $2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period.

2 Received $1,000 on account.

3 On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600. Any additional hours beyond 80 will be billed to KXMD at $40 per hour. In accordance with the contract, Peyton received $7,200 from KXMD as an advance payment for the first two months.

3 Paid $250 on account.

4 Paid an attorney $900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.)

5 Purchased office equipment on account from Office Mart, $7,500.

8 Paid for a newspaper advertisement, $200.

11 Received $1,000 for serving as a disc jockey for a party.

13 Paid $700 to a local audio electronics store for rental of digital recording equipment.

14 Paid wages of $1,200 to receptionist and part-time assistant.

Enter the following transactions on Page 2 of the two-column journal: Jul. 16 Received $2,000 for serving as a disc jockey for a wedding reception.

18 Purchased supplies on account, $850.

21 Paid $620 to Upload Music for use of its current music demos in making various music sets.

22 Paid $800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July.

23 Served as disc jockey for a party for $2,500. Received $750, with the remainder due August 4, 2016.

27 Paid electric bill, $915.

28 Paid wages of $1,200 to receptionist and part-time assistant.

29 Paid miscellaneous expenses, $540.

30 Served as a disc jockey for a charity ball for $1,500. Received $500, with the remainder due on August 9, 2016.

31 Received $3,000 for serving as a disc jockey for a party.

31 Paid $1,400 royalties (music expense) to National Music Clearing for use of various artists music during July.

31 Paid dividends, $1,250. Following is PS Musics chart of accounts. The balance in each account reflects the June 30th balance that was calculated in the Continuing Problem in chapter 1 and therefore is the beginning balance for July 1, 2016 (all accounts have normal balances).

11 Cash $3,920 12 Accounts Receivable 1,000

14 Supplies 170

15 Prepaid Insurance

17 Office Equipment

21 Accounts Payable 250

23 Unearned Revenue

31 Common Stock 4,000

33 Dividends 500

41 Fees Earned 6,200

50 Wages Expense 400

51 Office Rent Expense 800

52 Equipment Rent Expense 675

53 Utilities Expense 300

54 Music Expense 1,590

55 Advertising Expense 500

56 Supplies Expense 180

59 Miscellaneous Expense 415

Required: 1. Enter the July 1, 2016, account balances in the appropriate balance column of a four-column account. No entry is needed for accounts with a zero balance. Write Balance in the Item column, and select a check mark in the Posting Reference column. (Note: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. Refer to the Chart of Accounts for exact wording of account titles. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. Indicate a zero balance by inserting a 0 (zero) in either of the Balance columns opposite the entry. 4. Prepare an unadjusted trial balance as of July 31, 2016.