The unadjusted trial balance of PS Music as of July 31, 2016, along with the adjustment data for the two months ended July 31, 2016, are shown in Chapter 3. Based upon the adjustment data, the following adjusted trial balance was prepared:

PS Music

ADJUSTED TRIAL BALANCE

July 31, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	9,945.00
2	Accounts Receivable	4,150.00
3	Supplies	275.00
4	Prepaid Insurance	2,475.00
5	Office Equipment	7,500.00
6	Accumulated Depreciation-Office Equipment		50.00
7	Accounts Payable		8,350.00
8	Wages Payable		140.00
9	Unearned Revenue		3,600.00
10	Peyton Smith, Capital		9,000.00
11	Peyton Smith, Drawing	1,750.00
12	Income Summary
13	Fees Earned		21,200.00
14	Wages Expense	2,940.00
15	Office Rent Expense	2,550.00
16	Equipment Rent Expense	1,375.00
17	Utilities Expense	1,215.00
18	Music Expense	3,610.00
19	Advertising Expense	1,500.00
20	Supplies Expense	925.00
21	Insurance Expense	225.00
22	Depreciation Expense	50.00
23	Miscellaneous Expense	1,855.00
24	Totals	42,340.00	42,340.00

Required:

1.

(Optional) Using the data from Chapter 3, prepare an end-of-period spreadsheet on a sheet of paper or using spreadsheet software.

2.

Prepare an income statement, a statement of owners equity, and a balance sheet. (Note: Peyton Smith made investments in PS Music on June 1 and July 1, 2016.)*

3.

A.	Journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles.
B.	Post the closing entries. The income summary account is #33 in the ledger of PS Music. Indicate closed accounts by inserting a 0 (zero) in either of the Balance columns opposite the closing entry. No entry is required in the Item column.

4.

Prepare a post-closing trial balance.

*

For guidance in completing the financial statements, be sure to read the instructions above each statement carefully.

2. Prepare a statement of owners equity. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss is incurred or there is a decrease in owners equity, enter that amount as a negative number using a minus sign.

Score: 0/64

PS Music

Statement of Owners Equity

1

2

3

4

5

6

7

2. Prepare a balance sheet. Refer to the Chart of Accounts and the Labels and Amount Descriptions list for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Less: or Plus: will automatically appear if it is required.

Score: 105/139

PS Music

Balance Sheet

1

Assets

2

3

4

5

6

7

8

9

10

11

12

13

Liabilities

14

15

16

17

18

19

Owners Equity

20

21

3. A. Journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles..

Question not attempted.

PAGE 1PAGE 2PAGE 3PAGE 4

JOURNAL

Score: 0/226

DATE

DESCRIPTION

POST. REF.

DEBIT

CREDIT

1

Closing Entries

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

3. B. Post the closing entries. The income summary account is #33 in the ledger of PS Music. Indicate closed accounts by inserting a 0 (zero) in either of the Balance columns opposite the closing entry.

Question not attempted.

LEDGER

Score: 0/206

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 1	Balance				3,920.00
2	1		1	5,000.00		8,920.00
3	1		1		1,750.00	7,170.00
4	1		1		2,700.00	4,470.00
5	2		1	1,000.00		5,470.00
6	3		1	7,200.00		12,670.00
7	3		1		250.00	12,420.00
8	4		1		900.00	11,520.00
9	8		1		200.00	11,320.00
10	11		1	1,000.00		12,320.00
11	13		1		700.00	11,620.00
12	14		1		1,200.00	10,420.00
13	16		2	2,000.00		12,420.00
14	21		2		620.00	11,800.00
15	22		2		800.00	11,000.00
16	23		2	750.00		11,750.00
17	27		2		915.00	10,835.00
18	28		2		1,200.00	9,635.00
19	29		2		540.00	9,095.00
20	30		2	500.00		9,595.00
21	31		2	3,000.00		12,595.00
22	31		2		1,400.00	11,195.00
23	31		2		1,250.00	9,945.00

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 1	Balance				1,000.00
2	2		1		1,000.00	0.00	0.00
3	23		2	1,750.00		1,750.00
4	30		2	1,000.00		2,750.00
5	31		3	1,400.00		4,150.00

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 1	Balance				170.00
2	18		2	850.00		1,020.00
3	31		3		745.00	275.00

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 1		1	2,700.00		2,700.00
2	31		3		225.00	2,475.00

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 5		1	7,500.00		7,500.00

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 31		3		50.00		50.00

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 1	Balance					250.00
2	3		1	250.00		0.00	0.00
3	5		1		7,500.00		7,500.00
4	18		2		850.00		8,350.00

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 31		3		140.00		140.00

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 3		1		7,200.00		7,200.00
2	31		3	3,600.00			3,600.00

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 1	Balance					4,000.00
2	1		1		5,000.00		9,000.00
3
4

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 1	Balance				500.00
2	31		2	1,250.00		1,750.00
3

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2
3

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 1	Balance					6,200.00
2	11		1		1,000.00		7,200.00
3	16		2		2,000.00		9,200.00
4	23		2		2,500.00		11,700.00
5	30		2		1,500.00		13,200.00
6	31		2		3,000.00		16,200.00
7	31		3		1,400.00		17,600.00
8	31		3		3,600.00		21,200.00
9

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 1	Balance				400.00
2	14		1	1,200.00		1,600.00
3	28		2	1,200.00		2,800.00
4	31		3	140.00		2,940.00
5

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 1	Balance				800.00
2	1		1	1,750.00		2,550.00
3

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 1	Balance				675.00
2	13		1	700.00		1,375.00
3

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 1	Balance				300.00
2	27		2	915.00		1,215.00
3

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 1	Balance				1,590.00
2	21		2	620.00		2,210.00
3	31		2	1,400.00		3,610.00
4

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 1	Balance				500.00
2	8		1	200.00		700.00
3	22		2	800.00		1,500.00
4

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 1	Balance				180.00
2	31		3	745.00		925.00
3

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 31		3	225.00		225.00
2

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 31		3	50.00		50.00
2

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jul. 1	Balance				415.00
2	4		1	900.00		1,315.00
3	29		2	540.00		1,855.00
4

Points:

0 / 81

4. Prepare a post-closing trial balance.

How does grading work?

PS Music

POST-CLOSING TRIAL BALANCE

Score: 40/43

July 31, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Accounts Receivable
3	Supplies
4	Prepaid Insurance
5	Office Equipment
6	Accumulated Depreciation-Office Equipment
7	Accounts Payable
8	Wages Payable
9	Unearned Revenue
10	Peyton Smith, Capital
11	Totals

Points:

11.16 / 12