Texts: With the following starting balances from the previous month for each account: Cash ($3900), Accounts Receivable ($1000), Supplies ($170), Accounts Payable ($250), Common Stock ($4000), Dividends (-$500), Fees Earned ($6200), Music Expenses (-$1590), Office Rent Expenses (-$800), Equipment Rent Expenses (-$675), Advertising Expenses (-$500), Wages Expenses (-$400), Utilities Expenses (-$300), Supplies Expenses (-$180), and Misc. Expenses (-$415).
1. Enter the account balances in the appropriate balance column of a T-account and then prepare an unadjusted trial balance as of July 31st of the business's operations:
- Depositing $5,000 in PS Music's checking account.
- 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.
- 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.)
- 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.
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, 2015.
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, 2015.
31. Received $3,000 for serving as a disc jockey for a party.
31. Paid $1,400 royalties music expenses to National Music Clearing for use of various artists' music during July.
31. Paid dividends, $1,250.
4. Post the journal to the ledger.
