Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

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 theItem 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Social Media A Governance And Risk Guide

Authors: Peter R. Scott, J. Mike Jacka

1st Edition

1118061756, 978-1118061756

More Books

Students also viewed these Accounting questions

Question

4. Describe cultural differences that influence perception

Answered: 1 week ago