April 1: Calvin invested $40,000 in the business.
April 1: Paid $240 in advance to Hub Insurance for 3 months' insurance on his DJ Equipment.
April 4: Received $1,400 cash for being the DJ at a wedding.
April 6: Purchased DJ supplies including blank media, cables, cleaners, and sprays on account from "DJ Spinmasters" for $280.
April 7: Received an invoice in the amount of $1,800 from "Webbies" for creating a website to advertise his business.
April 8: Paid $100 on account to DJ Spinmasters.
April 16: Purchased DJ equipment for $30,000, paying $4,000 down and financing the rest with a Bank Loan payable over 5 years.
April 17: Earned $6,000 on account for a nationally broadcast CBC show on up and coming Canadian DJs.
April 20: Withdrew $1,600 from the business for personal expenses.
April 21: Received $3,000 from CBC on the amount owing for the nationally broadcast show.
April 23: Paid commission to his agent in the amount of $650.
April 25: Paid $280 for various online and wireless services used in the business.
April 30: Paid $420 on account to Webbies.
Step 5:
Prepare a 10-column worksheet for the month ended April 30, 2020 by doing the following:
- Transfer the accounts from the Trial Balance to the first two columns of the 10-column balance sheet. Don't forget to add the accounts that relate to Prepaid Expenses and Depreciation.
- Add the adjustments to columns 3 and 4 of the Worksheet.
- Insert the adjusted trial balance amounts in columns 5 and 6.
- Insert the Income Statement amounts in columns 7 and 8.
- Insert the Balance Sheet amounts in columns 9 and 10.
Step 6:
Prepare an Income Statement and a Classified Balance Sheet for the month ended April 30, 2020.
Step 7:
Journalize the Closing Entries and Post the adjusting and closing entries to the appropriate ledger accounts.
Step 8:
Prepare a Post-Closing Trial Balance.
