Show the effect of the following transactions for the month October, 2023 on the assets, liabilities and equity (accounting equation)
Q: (a) 3%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places,…
A: Time value of money :— According to this concept, value of money in present day is greater than the…
Q: Lakeside Incorporated produces a product that currently sells for $74 per unit. Current production…
A: The differential analysis is performed to compare the different alternatives available with the…
Q: Bryn Enterprises exchanged old trucks (cost $70,000 less $27,000 accumulated depreciation) plus cash…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: PART B REQUIREMENTS: For the given data below calculate all the variances for Level 1,2, and 3…
A: The group of individuals in charge of sales operations is also referred to as sales. Revenue…
Q: On January 1st, 2017, a nominal £13,000 index-linked bond was issued, and on January 1st, 2019, it…
A: A bond payable is a significant entry in a company's financial records, representing its debt to…
Q: Required: Using the information provided, complete the following liabilities section of Brook…
A: 1. Current Liability:The portion of the note that is due within the next 12 months will be…
Q: After the adjustments have been completed, the adjusted balance in the Supplies Expense account…
A: Supplies are the things that businesses need to run their day-to-day operations. These items…
Q: The following information is for X Company's two products, A and B: Product B $92,000 51,520 $40,480…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: 2 January 2018, MAYA Bhd issued RM1,500,000 of 10% bond at 106.231 with market interest 11% due 31…
A: Bonds are the securities issued by a business entity in order to raise funds for its business…
Q: In2018 Martin Corp.acquired and recorded good will of $45 million .martin consider Glynco a separate…
A: Goodwill is an intangible asset that is for generating super-profits in the future that cannot be…
Q: Which of the following events will result in the automatic termination of S corporation status?…
A: The shares of a deceased shareholder pass to their estate: This event does not automatically…
Q: Required: Prepare correct consolidated income statements for Years 5 and 6. (Input all values as…
A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…
Q: Since, the predetermined overhead rate and the budgeted factory overhead is given. We need to…
A: Predetermined Overhead rate is mainly used in absorption costing and its a way of allocating costs…
Q: Kieso Inc. has issued two types of debt on January 1, 2020, the start of the company's fiscal year…
A: A bond may be issued as a secured bond, unsecured bond, zero-coupon bond, or stated interest bond.…
Q: Pedro sells investment land on September 1, 2019. Information pertaining to the sale follows:…
A: Mortgage Loan -A loan secured by real estate is called a mortgage or mortgage loan. In this case,…
Q: 2
A: The objective of the question is to understand the posting of transactions in special journals to…
Q: seth and Marisol were divorced on December 1, 2022. Neither had dependents they claim for 2022. What…
A: 1⋅ Married Filing Jointly: This status is not applicable to Seth because he was not married on the…
Q: Please do not give solution in image format thanku
A: The objective of this question is to prepare a cash budget for ABC Company for the month of August.…
Q: The records of Cordova Corp. showed the following transactions, in the order given, relating to the…
A: Lets understand the basics.Under FIFO basis entity assumes that goods purchase first are sold first.…
Q: Dolphin Company has two service departments, S1 and S2 and three production departments, P1, P2 and…
A: The direct method of cost allocation is a technique used to allocate costs directly to respective…
Q: When the cost of inventory is increasing: LIFO shows lower COGS and lower taxable income FIFO shows…
A: The inventory can be valued using various methods as FIFO, LIFO and average method. The cost of…
Q: Sunland Corporation is a private company with a defined benefit pension plan. The following…
A: A defined benefit plan is a retirement plan in which an employer promises to provide employees with…
Q: 6
A: The first part of the question is asking for a correct explanation about the child coverage rider in…
Q: CYPRUS COMPANY began operation on January 1. Authorized were 20,000 shares of P10 par value ordinary…
A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…
Q: Q1. Prepare a Flexible budget for overheads on the basis of the following data. Ascertain the…
A: A flexible budget is a type of budget that can be changed according to the change in the level of…
Q: Name of Budgeted Cost Plant insurance Testing raw materials Manufacturing equipment setup Quality…
A: First of all, the costs are assigned to the activity pool, then they are determined whether it is…
Q: The image uploaded is the calculation of Socite Generale Bank, Ghana, Profitability ratios, shorter…
A: The study or analysis of the line items included in the company's financial statements is known as…
Q: Which of the following show the proper effect of a stock split and a stock dividend? Stock Dividend…
A: A stock dividend is a distribution of additional shares of a company's stock to existing…
Q: How much is to be allocated for Cooperative Education and Training Fund?
A: The Cooperative Education and Training Fund is a dedicated resource aimed at fostering experiential…
Q: Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z…
A: The objective of the question is to calculate the Return on Sales (ROS) for Division X. The ROS is a…
Q: Assume a face value of $10,000 a. Calculate the ask price of the Treasury bill maturing on 27…
A: A Treasury bill (T-bill) is a short-term debt security issued by a government as a way to raise…
Q: s) Unused Capacity Ratliff Appliances Company makes a household appliance with model number RM16.…
A: The amount of money a company spends on coffers ( similar as outfit, space, or labor) that it is…
Q: Zara sells 15% of its fast fashion items at a 15% markdown. If the value of each item is $35 and the…
A: In account, the productivity ratio is a fiscal standard that measures the effectiveness of a…
Q: The management of Nova Industries Inc. manufactures gasoline and diesel engines through two…
A: The overhead rate is a cost allocated to the production of a product or service. Overhead costs are…
Q: GIVE THE COMPARATIVE BALANCE SHEET HORIZONTAL ANALYSIS FROM THE GIVEN BALANCE SHEET BELOW…
A: Horizontal analysis is a technique used for financial analysis. It compares the company's financial…
Q: Explain the meaning of the following terms in the schedule of cost of goods manufactured: (i) Total…
A: Lets understand the basics.Schedule of cost of goods manufactured gets prepared by entity to know…
Q: Exotic Furnishings Ltd. has a line of credit secured by the equity in the business. The limit on the…
A: It is directed that interest rate is variable. Therefore,July 1 - Sep 9 = 6.8% ( therefore, for july…
Q: On 1 January 20X2 Farhad Co hired a machine under a five-year lease. A deposit of $500,000 was…
A: A lease is defined as a contractual agreement incorporated between two business entities where one…
Q: On September 30, 2014, Leeds LTD, acquired a potent in conjunction with the purchase of another…
A: An intangible asset is an asset that is not physical in nature, such as a patent, brand, trademark,…
Q: Navarre Energy Research specializes in developing and commercializing new products. It is organized…
A: The purpose of economic value added (EVA), which is often referred to as economic profit, is to…
Q: The information below pertains to Coronado Company for 2021. Net income for the year 6% convertible…
A: Basic earnings per share refer to a firm's net income was allotted to each share of common stock. In…
Q: Bosco Company adopted the dollar-value LIFO retail method at the beginning of 2024. Information for…
A: Inventory includes all the items, merchandise, and raw materials that are used by the business…
Q: When an owner makes withdrawals from a proprietorship, an expense is recordec 1) True 2) False
A: The balance sheet and income statement are the important financial statements of the business. The…
Q: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3…
A:
Q: Lamoura Sdn Bhd is a manufacturing companies that produces corporate merchandise. The company had…
A:
Q: J and K are a married couple filing jointly, with two children age 14 and 18. They have adjusted…
A: Answer: The child tax credit = c. $1,100The child tax credit is a refundable tax credit. For 2018…
Q: Computer Service and Repair was started five years ago by two college roommates. The company's…
A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…
Q: Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of…
A: The after-tax amount refers to the value or amount of income, financial result, or financial figure…
Q: [The following information applies to the questions displayed below.] The first production…
A: WEIGHTED AVERAGE METHOD :— Under this method, equivalent units are calculated by adding equivalent…
Q: Information pertaining to Brenton Corporation's sales revenue is presented in the following table:…
A: The credit purchases Increases the account payable. The account payable represents the amount due…
12. Show the effect of the following transactions for the month October, 2023 on the assets,
liabilities and equity (
Malcom Davis on October 1, 2023 at Business Bay, Dubai.
1. Started business with cash $200,000.
2. Deposited $50,000 in a bank.
3. Purchased office supplies on credit from Milton Traders for $30,000
4. Purchased office supplies for cash $5,000
5. Borrowed cash (loan) $40,000 from Fair Deal Financials.
6. Paid Milton Traders by cheque $6,000.
7. Paid back part of the loan (Fair Deal Financials) $ 10,000
8. Cash paid as salaries of employees $30,000.
9. Furniture purchased for $20,000, paid cash
10. Withdrawn $20,000 cash from business for personal use.
11. Provided consultancy services to Mr. David on account, $25,000
12. “Business Consultancy Services” buys land for $40,000.
13. Received $ 10,000 from Mr. David by cheque
14. Withdrawn $10,000 from bank for personal use.
15. “Business Consultancy Services” paid: wages, $2,700; rent, $2,000 and miscellaneous,
$500.
|
Statement showing effect of various transactionson Accounting Equation |
||||||||||
|
ASSETS = LIABILITIES+OWNERSEQUITY |
||||||||||
|
Trans. No. |
|
|
|
|
|
|
= |
|
|
|
|
1 bl. |
|
|
|
|
|
|
= |
|
|
|
|
2. bl. |
|
|
|
|
|
|
= |
|
|
|
|
|
|
|
|
|
|
|
= |
|
|
|
|
|
|
|
|
|
|
|
= |
|
|
|
|
|
|
|
|
|
|
|
= |
|
|
|
|
15 bl. |
|
|
|
|
|
|
|
|
|
|
|
Total = |
Step by step
Solved in 5 steps
- Discuss how each of the following transactions will affect assets, liabilities, and stockholders equity, and prove the companys accounts will still be in balance. A. A company purchased $450 worth of office supplies on credit. B. The company parking lot was plowed after a blizzard. A check for $75 was given to the plow truck operator. C. $250 was paid on account. D. A customer paid $350 on account. E. Provided services for a customer, $500. The customer asked to be billed.During December of this year, G. Elden established Ginnys Gym. The following asset, liability, and owners equity accounts are included in the chart of accounts: During December, the following transactions occurred: a. Elden deposited 35,000 in a bank account in the name of the business. b. Bought exercise equipment for cash, 8,150, Ck. No. 1001. c. Bought advertising on account from Hazel Company, 105. d. Bought a display rack on account from Cyber Core, 790. e. Bought office equipment on account from Office Aids, 185. f. Elden invested her exercise equipment with a fair market value of 1,200 in the business. g. Made a payment to Cyber Core, 200, Ck. No. 1002. h. Sold services for the month of December for cash, 800. Required 1. Write the account classifications (Assets, Liabilities, Capital, Drawing, Revenue, Expense) in the fundamental accounting equation, as well as the plus and minus signs and Debit and Credit. 2. Write the account names on the T accounts under the classifications, place the plus and minus signs for each T account, and label the debit and credit sides of the T accounts 3. Record the amounts in the proper positions in the T accounts. Write the letter next to each entry to identify the transaction. 4. Foot and balance the accounts.Effects of transactions on Accounting equation On Time Delivery Service had the following selected transactions during November: 1. Received cash from issuance of common stock, $75,000. 2. Paid rent for November, $5000. 3. Paid advertising expense, $3,000. 4. Received cash for providing delivery services, $34,500. 5. Borrowed $10,000 from Second National Bank to finance its operations. 6. Purchased a delivery van for cash, $25,000. 7. Paid interest on note from Second National Bank, $75. 8. Paid salaries and wages for November, $10,000. 9. Paid dividends, $2,000. Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (9), in a vertical column, and inserting at the right of each number the appropriate letter from he following list: a. Increase in an asset, decrease in another asset. h. Increase in an asset, increase in a liability. c. Increase in an asset, increase in stockholders’ equity. d. Decrease in an asset, decrease in a liability. e. Decrease in an asset, decrease in stockholders equity.
- A business has the following transactions: The business is started by receiving cash from an investor in exchange for common stock $20,000 The business purchases supplies on account $500 The business purchases furniture on account $2,000 The business renders services to various clients on account totaling $9,000 The business pays salaries $2,000 The business pays this months rent $3,000 The business pays for the supplies purchased on account. The business collects from one of its clients for services rendered earlier in the month $1,500. What is total income for the month?The transactions completed by PS Music during June 2018 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 Musk in exchange for common stock by depositing 5,000 in PS Music s 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 lage 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 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, 2018. 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, 2018. 31. Received 3,000 for serving as a disc jockey for a party. July 31. Paid 1,400 royalties (music expense) to National Music 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, 2018 (all normal balances), are as follows: 11 Cash 3,920 41 Fees Earned 6,200 12 Accounts Receivable 1,000 50 Wages Expense 400 14 Supplies 170 51 Office Rent Expense 800 15 Prepaid Insurance 52 Equipment Rent Expense 675 17 Office Equipment 53 Utilities Expense 300 21 Accounts Payable 250 54 Music Expense 1,590 23 Unearned Revenue 55 Advertising Expense 500 31 Common Stock 4,000 56 Supplies Expense 180 33 Dividends 500 59 Miscellaneous Expense 415 Instructions 1. Enter the July 1, 2018, 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, 2018.EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) Jon Wallace started a business. During the first month (March 20--), the following transactions occurred. Show the effect of each transaction on the accounting equation: Assets= Liabilities + Owners Equity. After each transaction, show the new account totals. (a) Invested cash in the business, 30,000. (b) Bought office equipment on account, 4,500. (c) Bought office equipment for cash, 1,600. (d) Paid cash on account to supplier in transaction (b), 2,000. EFFECTS OF TRANSACTIONS (REVENUE, EXPENSE, WITHDRAWALS) This exercise is an extension of Exercise 2-3B. Lets assume Jon Wallace completed the following additional transactions during March. Show the effect of each transaction on the basic elements of the expanded accounting equation: Assets = Liabilities + Owners Equity (Capital Drawing + Revenues Expenses). After transaction (k), report the totals for each element. Demonstrate that the accounting equation has remained in balance. (e) Performed services and received cash, 3,000. (f) Paid rent for March, 1,000. (g) Paid March phone bill, 68. (h) Jon Wallace withdrew cash for personal use, 800. (i) Performed services for clients on account, 900. (j) Paid wages to part-time employee, 500. (k) Received cash for services performed on account in transaction (i), 500.
- Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions: May 3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, 4,500. 5. Received cash from clients on account, 2,450. 9. Paid cash for a newspaper advertisement, 225. 13. Paid Office Station Co. for part of the debt incurred on April 5, 640. 15. Recorded services provided on account for the period May 115, 9,180. 16. Paid part-time receptionist for two weeks salary including the amount owed on April 30, 750. 17. Recorded cash from cash clients for fees earned during the period May 1-16, 8,360. Record the following transactions on Page 6 of the journal: 20. Purchased supplies on account, 735. 21. Recorded services provided on account for the period May 16-20,4,820. 25. Recorded cash from cash clients for fees earned for the period May 17- 23, 7,900. 27. Received cash from clients on account, 9,520. 28. Paid part-time receptionist for two weeks salary, 750. 30. Paid telephone bill for May, 260. 31. Paid electricity bill for May, 810. 31. Recorded cash from cash clients for fees earned for the period May 26-31, 3,300. 31. Recorded services provided on account for the remainder of May, 2,650. 31. Paid dividends, 10,500. Instructions 1. The cl1art of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2018, is shown in Exhibit 17. For each account in the post-closing trial balance, enter the balance in the appropriate Balance column of a four-column account. Date the balances May 1, 2018, and place a check mark () in the Posting Reference column. Journalize each of the May transactions in a two-column journal starting on Page 5 of the journal and using Kelly Consultings chart of accounts. (Do not insert the account numbers in the journal at this time.) 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). (A) Insurance expired during May is 275. (B) Supplies on hand on May 31 are 715. (C) Depreciation of office equipment for May is 330. (D) Accrued receptionist salary on May 31 is 325. (E) Rent expired during May is 1,600. (F) Unearned fees on May 31 are 3,210. 5. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 7 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a retained earnings statement, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 8 of d1e journal. (Income Summary is account #34 in d1e chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance.Journal entries and trial balance On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month: a. Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, 17,500. b. Purchased supplies on account, 2,300. c. Earned sales commissions, receiving cash, 13,300. d. Paid rent on office and equipment for the month, 3,000. e. Paid creditor on account, 1,150. f. Paid dividends, 1,800. g. Paid automobile expenses (including rental charge) for month, 1,500, and miscellaneous expenses, 400. h. Paid office salaries, 2,800. i. Determined that the cost of supplies used was 1,050. Instructions 1. Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. Journal entry explanations may be omitted. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of August 31, 20Y7. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for August. 5. Determine the increase or decrease in retained earnings for August.The transactions completed by PS Music during June 2019 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 cash from customers 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 to creditors 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: 16.Received 2,000 for serving as a disc jockey for a wedding reception. 18.Purchased supplies on account, 850. July 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, 2019. 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, 2019. 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, 2019 (all normal balances), are as follows: Instructions 1. Enter the July 1, 2019, 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, 2019.
- The transactions completed by PS Music during June 2019 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the business's operations: July 1. 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 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 cash from customers 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 SO hours per month for a monthly fee of 3,600. Any additional hours beyond SO 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 to creditors 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. 11. Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 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. July 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, 2019. 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, 2019. 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 l,250 cash from PS Music for personal use. PS Music's chart of accounts and the balance of accounts as of July 1, 2019 (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 Peyton smith, Drawing 4,000 32 Fees Earned 500 41 Wages Expense 6,200 50 Office Rent Expense 400 51 Equipment Rent Expense 800 52 Utilities Expense 675 53 Supplies 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, 2019, 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, 2019.B. Kelso established Computer Wizards during November of this year. The accountant prepared the following chart of accounts: The following transactions occurred during the month: a. Kelso deposited 45,000 in a bank account in the name of the business. b. Paid the rent for the current month, 1,800, Ck. No. 2001. c. Bought office desks and filing cabinets for cash, 790, Ck. No. 2002. d. Bought a computer and printer from Cyber Center for use in the business, 2,700, paying 1,700 in cash and placing the balance on account, Ck. No. 2003. e. Bought a neon sign on account from Signage Co., 1,350. f. Kelso invested her personal computer software with a fair market value of 600 in the business. g. Received a bill from Country News for newspaper advertising, 365. h. Sold services for cash, 1,245. i. Received and paid the electric bill, 345, Ck. No. 2004. j. Paid on account to Country News, a creditor, 285, Ck. No. 2005. k. Sold services for cash, 1,450. l. Paid wages to an employee, 925, Ck. No. 2006. m. Received and paid the bill for the city business license, 75, Ck. No. 2007. n. Kelso withdrew cash for personal use, 850, Ck. No. 2008. o. Kelso withdrew cash for personal use, 850, Ck. No. 2008. Required 1. Record the owners name in the Capital and Drawing T accounts. 2. Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts. 3. Record the transactions in T accounts. Write the letter of each entry to identify the transaction. 4. Foot the T accounts and show the balances. 5. Prepare a trial balance, with a three-line heading, dated November 30, 20--.Discuss how each of the following transactions for Watson, International, will affect assets, liabilities, and stockholders equity, and prove the companys accounts will still be in balance. A. An investor invests an additional $25,000 into a company receiving stock in exchange. B. Services are performed for customers for a total of $4,500. Sixty percent was paid in cash, and the remaining customers asked to be billed. C. An electric bill was received for $35. Payment is due in thirty days. D. Part-time workers earned $750 and were paid. E. The electric bill in C is paid.
