1 Homework Chapter 3 Saved Help Save & Exit 4 Consider the following situations for Shocker 1. On November 28, 2024, Shocker received a $3.750 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue was credited on November 28. 2. On December 1, 2024, the company paid a local radio station $2,550 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising was debited on December 1. 3. Employee salaries for the month of December totaling $7,500 wil be paid on January 7, 2025. 4. On August 31, 2024, Shocker borrowed $65.000 from a local bank. A note was signed with principal and 6% interest to be paid on August 31, 2025. Required: Indicate by how much the assets, labilities, and stockholders' equity in the December 31, 2024, balance sheet is higher or lower if the adjusting entry is not recorded. pf none of the categories apply for a particular item, leave the cell blank.) ferences Assets Stockholders Equlty Liabilities 1. 2. 3. 4. Total Higher Lower
Q: Dakota Corporation is an owner/operator of 15 water filtration systems in the Northwestern region of...
A: In Accounting we have capital expenditure and revenue expenditure. Capital e...
Q: Artwork Inc.'s financial reporting year ends June 30 and it reports quarterly. This means that the f...
A: Tax Expenses: It is the sum of all taxes payable by a person, company, or other organisation to the ...
Q: Presented below is selected information pertaining to the Cone Company: § Cash balance, January 1,...
A: Solution: As per basic accounting equation: Total Assets = Total liabilities + Capital Ending Capita...
Q: ABC Enterprises is a multi-divisional firm that makes and sells personal protective equipment to hea...
A: Introduction:- ABC Enterprises is a multi-divisional corporation that manufactures and distributes p...
Q: Crispin Santos started a retail merchandise business on January 1, 2021. During the year ended Decem...
A: A purchase is the practice of obtaining possession of a specific asset, property, item, or right by ...
Q: Looking for cost savings in administrative areas, the vice-president for human resources at McMahon ...
A: Partial labour Productivity is measure related to total output at single input labour hour.
Q: An important distinction between the direct method and the indirect method of preparing a statement ...
A: Introduction:- The income statement is recast on a cash basis rather than an accrual one from the to...
Q: A new airconditioning unit costs P150,000 and will have a salvage value of P15,000 after 5 years. ...
A: The question is based on the concept of Annuity and Present value in Financial Management. Annuity r...
Q: INCOME STATEMENT JUST STUFF, INC. FOR THE YEARS ENDED DEC. 31 2019 & 2020 2020 P2200.000 2019 Sales ...
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or str...
Q: Name which phase of the internal audit process each of the activities (1-10) listed falls
A: Phases of Internal Auditing There are different phases which are involved by the internal Auditing p...
Q: o a.) The decision as to whether to sell the Western House should be made by comparing the investor'...
A: Calculation of discounting factor : Year 1 = 1( 1+ 0.08 )1 = 0.926 Year 2 = 1( 1+ 0.08 )2 = 0.85...
Q: 1. There are a few errors in the annual income statement for Mayfare Pluml ing, owned by James Fare....
A: Income statement is the statement which shows net income or loss of the company by the difference be...
Q: In Q2 of 2022, Dogs Company made advertising expense amounting to P800,000. The said advertisement a...
A: Accrual system of accounting says that every thing which is accrued has to be provided in books of a...
Q: 1 $82,971 $14,850 252,300 miles 20,200 miles dollar. 59,412 6,150 295,900 miles $13,950 32,900 miles...
A: Solution Concept When the asset is depreciated using the capacity of miles to be driven , Formula to...
Q: My Kitchen Delights (MKD) is considering two newsuppliers for the jars used in the production proces...
A: EOQ termed as Economic order quantity states the evaluation which business perform as it represent t...
Q: The Accountant for the a Company forgot to make an adjusting entry to record depreciation for the cu...
A: What is Depreciation? In business, the fixed asset is used over a long period. Due to this, there is...
Q: Riverside Ltd is issuing shares payable by instalments. It completed the following transactions: Rec...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: RSV Co reports only current assets and current liabilities on its balance sheet. Property, plant and...
A: Accounting Assumptions - There are 3 basic assumptions of accounting these are - 1. Accrual 2. Going...
Q: The accountant at Fidel Trading has received the November 2010 bank statement. She immediately inves...
A: Journal entry - It refers to the process where the business transactions are recorded in the books o...
Q: In 2021, Allen company reported cash basis income of P 7,800,000. Tracing back its records, accounts...
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are inc...
Q: lassify information (1-5) according to its nature (e.g., physical, oral, documentary or evidence ge...
A: solution concept let us understand the type of information by its nature Physical The informat...
Q: A jeans maker is designing a new line of jeans called Slams. Slams will sell for $320 per unit and c...
A:
Q: A store purchased canned goods at an invoice price of $2,000 and terms of 2/10, n/30. Half of the g...
A: >Discount term is a payment agreement between buyer and the seller. >The buyer and seller ...
Q: Given the two machines' data Machine A Machine B First Cost P8.000.00 P14,000.00 Salvage value 2.000...
A: Equivalent uniform annual Cost=Initial CostPresent Value Annuity Factor+Annual Cost
Q: The post-closing trial balance of Wildhorse Corporation at December 31, 2022, contains the following...
A:
Q: Unit $6.55 $3.45 $1.45 Direct materials Direct labor Variable manufacturing overhead Fixed manufactu...
A: The costs are distinguished as variable and fixed cost. The variable cost per unit remains constant...
Q: On May 1, 2020, Forest Company issued 3,000 $1,000 bonds at 102. Each bond was issued with one detac...
A: Market Value of Warrants = No. of bonds x fair value = 3,000 x $30 = $90,000 Market Value of Bonds...
Q: Maintenance $34,600 + $1.25 DLH Power $0.50 DLH Indirect labor $68,200 + $2.30 DLH Rent $31,100 Requ...
A: The overhead costs can be classified as variable or fixed costs. The total variable costs changes wi...
Q: 1. A company bought a machine for BD300,000 which has a useful life of 7 years and can be sold for B...
A: Depreciation in simple words is depletion of value of assets, in simple words depreciation occurs du...
Q: The company's net income and the year-end balance in the retained earnings account are, respectively...
A: company net income = Revenue less expenses during the year = 43...
Q: Q Ltd., a Canadian corporation, owns 100% of the shares of R Ltd. The R shares have an ACB of $110,0...
A: the AcB of the land in Q after the wind up as following
Q: uit buying vendor coffee for one year $4,483.97 and decided to contribute $2,400 (you saved $200 per...
A: The value of the money at retirement is the future value of the savings.
Q: Excellent Service Trial Balance December 31, 2016 Cash in Bank Php 345,000 Accounts Receivable 90,00...
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for y...
Q: n January 2021, ABC Inc. paid property taxes on its factory building for the calendar year 2021 in t...
A: Solution: Property taxes is for whole year, therefore same should be recognized equally in each quar...
Q: Cash received from long-term notes payable Purchase of investments Cash dividends paid Interest paid...
A: Purchase of investments comes under cash flow from investing activities .
Q: 12. Costs that are treated as assets until the product is sold are called: a. product costs b. perio...
A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are allow...
Q: rnalize the entry to record the amount of rnalize the entries to record the following The first semi...
A: The answers have been mentioned below.
Q: Prepare adjusting entry for October 31. Show computation. A bank loan amounting to P100,000 was obta...
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized i...
Q: On May 7, 2021, Permission to Dance (PTD) Corporation sold a tract of land for P70,000 that resulted...
A: The correct answer for the above mentioned answer is given in the following steps for your reference...
Q: ABC Company acquired a fire insurance on Nov. 1, 2021. The company paid P12,000 for the said annual ...
A: The prepaid expenses are the expenses paid but not due yet for payment. These are recorded as curren...
Q: Below is a portion of the December 31, 2024, adjusted trial balance for a company. Prepare an income...
A: Income Statement For the Year Ended December 31, 2024 Service Revenue $ 5,40,000 Less: E...
Q: On January 1,2020 , Red Day Company granted 80 share options to each of its 400 employees for the pu...
A: If market related conditions are failed , we will continue to record expense , i.e. we will not reve...
Q: Crispin Santos started a retail merchandise business on January 1, 2020. During the year ended Decem...
A: Since all the purchases are on credit, it can be calculated from balancing creditors account. Calc...
Q: Preparation of the Income Statement The income and expense accounts of Nora Maniquiz Real Estate Age...
A: The question is related to Income Statement. An income statement is a financial statement that shows...
Q: Use the following information for the Exercises below. (Algo) [The following information applies to ...
A: A contribution margin income statement is one that deducts all variable expenses from sales to arriv...
Q: The following data relate to store equipment of BBB Company for 2021: · Store Equipment at ...
A: Accumulated Depreciation, Jan. 1 = P30,000 Accumulated Depreciation, Dec. 31 = P35,000
Q: total tax expense?
A: Tax rate 30 % for 2020 year And 25 % for 2021 year Total tax expense as follows
Q: On July 1, 2022, BTS Company purchased a machinery from a dealer paying P2,310,000 cash. In addition...
A: Purchase cost = P2,310,000 Transportation cost = P150,000
Q: Required: Using the balance sheet and income statement above, complete the operating section workshe...
A: Cash Flow statements are the statement of changes in cash in an organization. Any non-cash item will...
Q: What is PV ratio? How do you calculate it?(explain with an example)
A: PV ratio is the ratio that represents the function of sales and contribution. This shows the contrib...
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Problem 2-62B Comprehensive Problem Mulberry Services sells electronic data processing services to firms too Email to own their own computing equipment. Mulberry had the following amounts and amount balances as of January 1, 2019: During 2019, the following transactions occurred (the events described below are aggregations of many individual events): During 2019, Mulberry sold $690,000 of computing services, all on credit. Mulberry collected $570,000 from the credit sales in Transaction a and an additional $129,000 from the accounts receivable outstanding at the beginning of the year. Mulberry paid the interest payable of $8,000. A Wages of $379,000 were paid in cash. Repairs and maintenance of $9,000 were incurred and paid. The prepaid rent at the beginning of the year was used in 2019. In addition, $28,000 of computer rental costs were incurred and paid. There is no prepaid rent or rent payable at year-end. Mulberry purchased computer paper for $13,000 cash in late December. None of the paper was used by year-end. Advertising expense of $26,000 was incurred and paid. Income tax of $10,300 was incurred and paid in 2019. Interest of $5,000 was paid on the long-term loan. (Continued) Required: Establish a T-account for the accounts listed above and enter the beginning balances. Use a chart of accounts to order the T-accounts. Analyze each transaction; Journalize as appropriate. (Note: Ignore the date because these events are aggregations of individual events.) Post your journal entries to the T-accounts. Add additional T-accounts when needed. Use the ending balances in the T-accounts to prepare a trial balance.Exercise 2-38 Events and Transactions The following economic events related to K the bill need not be paid until March 1, 2019. On February, 15, Kqualify and does not qualify. indicate whether each of the above events would qualify as a transaction and be recognized and recorded in the accounting system on the date indicated. 2. CONCEPTUAL CONNECTION For any events that did not qualify as a transaction to be recognized and recorded, explain why it does not qualify.Exercise 3-43 Recognizing Expenses Treadway Dental Services gives each of its patients a toothbrush with the name and phone number of the dentist office and a logo imprinted on the brush. Treadway purchased 15,000 of the toothbrushes in October 2019 for $3,130. The toothbrushes were delivered in November and paid for in December 2019. Treadway began to give the patients the toothbrushes in February 2020. By the end of 2020, 4,500 of the toothbrushes remained in the supplies account. Required: How much expense should be recorded for the toothbrushes in 2019 and 2020 to properly match expenses with revenues? Describe how the 4,500 toothbrushes that remain in the supplies account will handled in 2021.
- Problem 2-62B Comprehensive Problem Mulberry Services sells electronic data processing services to firms too Email to own their own computing equipment. Mulberry had the following amounts and amount balances as of January 1, 2019: During 2019, the following transactions occurred (the events described below are aggregations of many individual events): During 2019, Mulberry sold $690,000 of computing services, all on credit. Mulberry collected $570,000 from the credit sales in Transaction a and an additional $129,000 from the accounts receivable outstanding at the beginning of the year. Mulberry paid the interest payable of $8,000. A Wages of $379,000 were paid in cash. Repairs and maintenance of $9,000 were incurred and paid. The prepaid rent at the beginning of the year was used in 2019. In addition, $28,000 of computer rental costs were incurred and paid. There is no prepaid rent or rent payable at year-end. Mulberry purchased computer paper for $13,000 cash in late December. None of the paper was used by year-end. Advertising expense of $26,000 was incurred and paid. Income tax of $10,300 was incurred and paid in 2019. Interest of $5,000 was paid on the long-term loan. (Continued) Required: 1. Establish a ledger for the accounts listed above and enter the beginning balances. Use a chart of accounts to order the ledger accounts. 2. Analyze each transaction, Journalize as appropriate. (Note: Ignore the date because these events are aggregations of individual events.) 3. Post your journal entries to T-accounts, Add additional T-accounts when needed. 4. Use the ending balances in the T-accounts to prepare a trial balanceProblem 3-64B Identification and Preparation of Entries Morgan Dance Inc. provides ballet, tap, and jazz dancing instruction to promising young dancers. Morgan began operations in January 2020 and is preparing its monthly financial statements. The following items describe Morgans transactions in January 2020: Morgan requires that dance instruction be paid in advance-either monthly or quarterly. On January 1, Morgan received $4,125 for dance instruction to be provided during 2020. On January 31, Morgan noted that $825 of dance instruction revenue is still unearned. On January 20, Morgans hourly employees were paid $1,415 for work performed in January. Morgans insurance policy requires semiannual premium payments. Morgan paid the $3,000 insurance policy which covered the first half of 2020 in December 2019. When there are no scheduled dance classes, Morgan rents its dance studio for birthday parties for $100 per two-hour party. Four birthday parties were held during January. Morgan will not bill the parents until February. Morgan purchased $350 of office supplies on January 10. On January 31, Morgan determined that Office supplies of $770 were unused. Morgan received a January utility bill for S770. The bill will not be paid until it is due in February. Required: Identify whether each transaction is an adjusting entry or a regular journal entry. If the entry is an adjusting entry, identify it as an accrued revenue, accrued expense, deferred revenue, or deferred expense. Prepare the entries necessary to record the transactions above and on the previous page.Problem 3-71B Preparing a Worksheet (Appendix 3A) Flint Inc. operates a cable television System. At December 31, 2019, the following unadjusted account balances were available: The following data are available for adjusting entries: At year end, $1,500 Of office supplies remain unused. Annual depreciation on the building is $20,000. Annual depreciation on the equipment is $150,000 The interest rate on the note is 8%. Four months' interest is unpaid and unrecorded at December 31, 2019. At December 31, 2019, services of $94,000 have performed but are unbilled and unrecorded. Utility bills of $2,800 are unpaid and unrecorded at December 31, 2019. Income taxes of $49,633 were unpaid and unrecorded at year end. Â Required: Prepare a worksheet for Flint. Prepare an income statement, a retained earnings statement, and a classified balance sheet for Flint. Prepare the closing entries.
- Case 2-68 Accounting for Partially Completed Events: 3 Prelude to Chapter 3 Ehrlich Smith. the owner of The Shoe Bone has asked you to help him understand the proper way to account for certain accounting items as he prepares his 2019 financial statements. Smith has provided the following information and observations: (Continued) a. A 3-year fire insurance policy was purchased on 2019, for $2,400. Smith believes that a part of the cost of the insurance policy should be allocated to each period that benefits from its coverage. b. The store building was purchased for 580,000 in January 2011. Smith expected then (as he does now) that the building will be serviceable as a shoe store for 20 years from the date of purchase. In 2011, Smith estimated that he could sell the property for $6,000 at the end of its serviceable life. He feels that each period should bear some portion of the cost of this long-lived asset that is slowly being consumed. c. The Shoe Box borrowed 520300 on a 1-year, 8% note that is due on September 1 next year) Smith notes that $21,600 cash will be required to repay the note at maturity. The $1,600 difference is, he feels, a cost of using the loaned funds and should be spread over the periods that benefit from the use of' the loan funds; Required: Explain what Smith is trying to accomplish with the three items. Are his objectives supported by the concepts that underlie accounting?Expense Adjustments Faraday Electronic Service repairs stereos and DVD players. During 2019, Faraday engaged in the following activities: On September 1, Faraday paid Wausau Insurance $4,860 for its liability insurance for the next 12 months. The full amount of the prepayment was debited to prepaid insurance. At December 31, Faraday estimates that $1,520 of utility costs are unrecorded and unpaid. Faraday rents its testing equipment from JVC. Equipment rent in the amount of $1,440 is unpaid and unrecorded at December 31. In late October, Faraday agreed to become the sponsor for the sports segment of the evening news program on a local television station. The station billed Faraday $4,350 for 3 months' sponsorship-November 2019, December 2019, and January 2020-in advance. When these payments were made, Faraday debited prepaid advertising. At December 31, 2 months' advertising has been and I month remains unused. Required: Prepare adjusting entries at December 31 for these four activities. CONCEPTUAL CONNECTION What would be the effect on expenses if the adjusting entries were not made?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: July 1. Peyton Smith made an additional investment in PS Music 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: July 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. Withdrew 1,250 cash from PS Music for personal use. PS Musics chart of accounts and the balance of accounts as of July 1, 2016 (all normal balances), are as follows: Instructions 1. Enter the July 1, 2016, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column, and place a check mark () in the Posting Reference column. (Hint: 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. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 2016.
- Problem 3-70B Comprehensive Problem: Reviewing the Accounting Cycle Wilburton Riding Stables provides stables, care for animals, and grounds for riding and showing horses. The account balances at the beginning of 2019 were: During 2019, the following transactions occurred: Wilburton provided animal care services, all on credit, for $210,300. Wilburton rented stables to customers for $20,500 cash. Wilburton rented its grounds to individual riders, groups, and show organizations for $41,800 cash. There remains $15,600 of accounts receivable to be collected at December 31, 2019. Feed in the amount of $62,900 was purchased on credit and debited to the supplies Straw was purchased for $7,400 cash and debited to the supplies account. Wages payable at the beginning of 2019 were paid early in 2019. Wages were earned and paid during 2019 in the amount of $12,000. The income taxes payable at the beginning of 2019 were paid early in 2019. Payments of $73,000 were made to creditors for supplies previously purchased on credit. One years interest at 9% was paid on the note payable on July 1, 2019. During 2019, Jon Wilburton, a principal stockholder, purchased a horse for his Wife, Jennifer, to ride. The horse cost $7,000, and Wilburton used his personal credit to purchase it. The horse is stabled at the Wilburton home rather than at the riding stables. Property taxes were paid on the land and buildings in the amount of S17,000. Dividends were declared and paid in the amount Of The following data are available for adjusting entries: • Supplies (feed and straw) in the amount of $30,400 remained at year end. • Annual depreciation on the buildings is $6,000. • Annual depreciation on the equipment is • Wages of $4,000 were unrecorded and unpaid at year end. • Interest for 6 months at 9% per year on the note is unpaid and unrecorded at year end. • Income taxes of $16,500 were unpaid and unrecorded at year end. Required: Post the 2019 beginning balances to T-accounts. Prepare journal entries for Transactions a through k and post the journal entries to T-accounts, adding any new T-accounts you need. Prepare the adjustments and post the adjustments to the T-accounts, adding any new T-accounts you need. Prepare an income statement. Prepare a retained earnings statement. Prepare a classified balance sheet. Prepare closing entries. CONCEPTUAL CONNECTION Did you include Transaction i among Wilburtons 2019 journal entries? Why or why not?Problem 3-70B Comprehensive Problem: Reviewing the Accounting Cycle Wilburton Riding Stables provides stables, care for animals, and grounds for riding and showing horses. The account balances at the beginning of 2019 were: During 2019, the following transactions occurred: Wilburton provided animal care services, all on credit, for $210,300. Wilburton rented stables to customers for $20,500 cash. Wilburton rented its grounds to individual riders, groups, and show organizations for $41,800 cash. There remains $15,600 of accounts receivable to be collected at December 31, 2019. Feed in the amount of $62,900 was purchased on credit and debited to the supplies Straw was purchased for $7,400 cash and debited to the supplies account. Wages payable at the beginning of 2019 were paid early in 2019. Wages were earned and paid during 2019 in the amount of $12,000. The income taxes payable at the beginning of 2019 were paid early in 2019. Payments of $73,000 were made to creditors for supplies previously purchased on credit. One years interest at 9% was paid on the note payable on July 1, 2019. During 2019, Jon Wilburton, a principal stockholder, purchased a horse for his Wife, Jennifer, to ride. The horse cost $7,000, and Wilburton used his personal credit to purchase it. The horse is stabled at the Wilburton home rather than at the riding stables. Property taxes were paid on the land and buildings in the amount of S17,000. Dividends were declared and paid in the amount Of The following data are available for adjusting entries: • Supplies (feed and straw) in the amount of $30,400 remained at year end. • Annual depreciation on the buildings is $6,000. • Annual depreciation on the equipment is • Wages of $4,000 were unrecorded and unpaid at year end. • Interest for 6 months at 9% per year on the note is unpaid and unrecorded at year end. • Income taxes of $16,500 were unpaid and unrecorded at year end. Required: Post the 2019 beginning balances to T-accounts. Prepare journal entries for Transactions a through j and post the journal entries to T-accounts, adding any new T-accounts you need. Prepare the adjustments and post the adjustments to the T-accounts, adding any new T-accounts you need. Prepare an income statement. Prepare a retained earnings statement. Prepare a classified balance sheet Prepare closing entries. CONCEPTUAL CONNECTION Did you include Transaction g among Tarkingtons 2019 journal entries? Why or why not?Continuing Problem 4.Total of Debit column: 40,750 The transactions completed by PS Music during June 20Y5 were described .it the end of Chapter 1. The following transactions were completed during July, the second month of businesss operations: July 1. Peyton Smith made an additional investment k PS Music in exchange for common stock by depositing 5,000 in PS Mu wet 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 musk 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 Musk, Peyton signed a contract with a local radio station. KXMD, to provide guest spots for the next three months. The contract requires PS Musk 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 2SO 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 Pane 2 of the two-column journal: 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 Musk for use of its current musk demos in making various musk 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 4.20YS. 27.Paid electric Ml 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 S00 with the remainder due on August 9. 20Y5. 31.Received 3,000 for serving as a disc jockey for a party. 31.Paid 1.400 royalties (musk expense) to National Musk Clearing for use of various artists music during July. 31. Paid dividends, 1,250. PS Musics chart of accounts and the balance of accounts as of July 1, 20Y5 (all normal balances), are as follows: 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 67S 53 Utilities Expense 300 54 Music Expense 1.590 55 Advertising Expense 500 56 Supplies Expense 180 59 Miscellaneous Expense 415 Instructions 1. Enter the July 1, 20Y5, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column, and place a check mark () in the Posting Reference column. (Hint: 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. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 20Y5.