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 Common Stock 9,000.00 11 Retained Earnings 12 Dividends 1,750.00 13 Income Summary 14 Fees Earned 21,200.00 15 Wages Expense 2,940.00 16 Office Rent Expense 2,550.00 17 Equipment Rent Expense 1,375.00 18 Utilities Expense 1,215.00 19 Music Expense 3,610.00 20 Advertising Expense 1,500.00 21 Supplies Expense 925.00 22 Insurance Expense 225.00 23 Depreciation Expense 50.00 24 Miscellaneous Expense 1,855.00 25 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 retained earnings statement, and a balance sheet.* 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 #34 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. CHART OF ACCOUNTSPS MusicGeneral Ledger

ASSETS 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Insurance 17 Office Equipment 18 Accumulated Depreciation-Office Equipment

LIABILITIES 21 Accounts Payable 22 Wages Payable 23 Unearned Revenue

EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends 34 Income Summary

REVENUE 41 Fees Earned

EXPENSES 50 Wages Expense 51 Office Rent Expense 52 Equipment Rent Expense 53 Utilities Expense 54 Music Expense 55 Advertising Expense 56 Supplies Expense 57 Insurance Expense 58 Depreciation Expense 59 Miscellaneous Expense

LabelsCash flows from financing activitiesCash flows from investing activitiesCash flows from operating activitiesCurrent assetsCurrent liabilitiesExpensesFor the Two Months Ended July 31, 2016July 31, 2016Property, plant, and equipmentAmount DescriptionsAdd dividendsDecrease in retained earningsIncrease in retained earningsNet decrease in cash during June and JulyNet increase in cash during June and JulyLess dividendsNet incomeNet lossRetained earnings, June 1, 2016Retained earnings, July 31, 2016Total assetsTotal current assetsTotal expensesTotal liabilitiesTotal liabilities and stockholders equityTotal property, plant, and equipmentTotal stockholders equity