The transactions that PS Music completed during June 2014 are described at the end Chapter 1. The following transactions were completed during July, the second month business operations:
July 1st.  Peyton Smith made an additional investment in PS Music by depositing $ 5,000
in PS Music's checking account.
1. Instead of continuing to share office space with local real estate agents,
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 period of one year.
2. Received $ 1,000 in account.
3. On behalf of PS Music, Peyton signed a contract with a local radio station,
KXMD, to provide guest places for the next three months.  Contract requires
PS Music provides guest disc jockeys for 80 hours per month on a monthly basis
costs $ 3,600.  Any additional hours above 80 will be billed to KXMD for $ 40
per hour.  Under the contract, Peyton received $ 7,200 from KXMD
as a down payment for the first two months.
3. Paid $ 250 in account.
4. Paid the attorney $ 900 to review his July 3 contract with KXMD.
(Record as Other Expenses.)
5. Purchased office equipment on account from the Office Mart, $ 7,500.
8. Paid for newspaper advertising, $ 200.
11. Receive $ 1,000 for serving as a disc jockey for a party.
13. Paid $ 700 to local audio electronics store to rent digital recording equipment.
14. Paid $ 1,200 salary to receptionists and part-time assistants.
Enter the following transactions on Page 2 of the two column journal.
July 16 Received $ 2,000 to serve as a disc jockey for a wedding reception.
18. Purchased supplies on account, $ 850.
21. Paid $ 620 to Upload Music to use his current music demos to create various musical sets.
22. Paid $ 800 to local radio station to advertise PS Music service twice
every day for the rest of July.
23. Served as a disc jockey for a $ 2,500 party.  Received $ 750, with the remainder
due August 4, 2014.
27. Paid the $ 915 utility bill.
28. Paid $ 1,200 salary to receptionists and part-time assistants.
29. Paid miscellaneous expenses, $ 540.
30. Become a disc jockey for a $ 1,500 charity party.  Received $ 500, with
remaining due on August 9, 2014.
31. Receive $ 3,000 to serve as a disc jockey for a party.
31. Paid $ 1,400 royalties (music fees) to National Music Clearing for use
various music artists during the month of July.
31. Withdraw $ 1,250 cash from PS Music for personal use.
PS Music account chart and account balance as of July 1, 2014 (all normal
balance), are as follows:
11 Cash $ 3,920 41 Revenue Revenue $ 6,200
12 Accounts Receivable 1,000 50 Wages Expense 400
14 Supplies 170 51 Office Rental Costs 800
15 Prepaid Insurance - 52 Equipment Rental Expense 675
17 Office Equipment - 53 Utilities Expense 300
21 Accounts Payable 250 54 Music Expense 1,590
23 Unearned Revenues - 55 Advertising Expenses 500
31 Peyton Smith, Capital 4,000 56 Supplies Expense 180
32 Peyton Smith, Drawings 500 59 Miscellaneous Expenses 415
Instructions
1. Enter the balance for the July 1, 2014 account into the appropriate balance column of the four column account.  Write Balance in the Item column, and put a check mark () in the column
Post Reference Column.  (Hint: Verify the equality of debit and credit balances
in the ledger before continuing with the next instructions.)
2. Analyze and journal every transaction in the two column journal starting on Page 1,
omits annotated journal entries.
3. Post the journal to the ledger, add the account balance to the appropriate balance column after each posting.
4. Prepare a trial balance that has not been adjusted as of July 31, 2014