During the first month of operations (April 2016), Stein Music Services Corporation completed the following selected transactions:

Question:

During the first month of operations (April 2016), Stein Music Services Corporation completed the following selected transactions:
a. The business received cash of $44,000 and a building with a fair value of $ 106,000. The corporation issued common stock to the stockholders.
b. Borrowed $63,000 from the bank; signed a note payable.
c. Paid $49,000 for music equipment.
d. Purchased supplies on account, $230.
e. Paid employees' salaries, $6,000.
f. Received $3,710 for music services performed for customers.
g. Performed services for customers on account, $13,300.
h. Paid $ 100 of the account payable created in transaction d.
i. Received an $800 bill for utility expense that will be paid in the near future,
j. Received cash on account, $ 1,200.
k. Paid the following cash expenses: (1) rent, $1,100; (2) advertising, $700.
Requirements
1. Record each transaction directly in the T-accounts without using a journal. Use the letters to identify the transactions.
2. Prepare the trial balance of Stein Music Services Corporation at April 30, 2016.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Financial Accounting

ISBN: 978-0134127620

11th edition

Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz

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