The transactions completed by Music Depot during November 2015 were
The transactions completed by Music Depot during November 2015 were described at the end of Chapter 1. The following transactions were completed during December, the second month of the business’s operations:
December 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 $1,250 on account.
3. On behalf of Music Depot, Pat signed a contract with a local radio station, CHBD, to provide guest spots for the next three months. The contract requires Music Depot 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 CHBD at $40 per hour. In accordance with the contract, Pat received $7,200 from CHBD as an advance payment for the first two months.
3. Paid $250 on account.
5. Purchased office equipment on account from One-Stop Office Mart, $6,000.
8. Paid for a newspaper advertisement, $200.
11. Received $900 for serving as a disc jockey for a party.
23. Served as disc jockey for a party for $2,500. Received $760, with the remainder due January 4, 2016.
31. Paid $1,400 royalties (music expense) to Society of Composers, Authors and Music Publishers of Canada (SOCAN) for use of various artists’ music during December.
31. Withdrew $1,500 cash from Music Depot for personal use.
Music Depot’s chart of accounts and the balance of accounts as at December 1, 2015 (all normal balances), are as follows:
1. Enter the December 1, 2015, account balances, noting if it is a debit or credit. Write Balance in the Item column and place a check mark () in the Posting Reference column.
2. Analyze and journalize each transaction in a two-column journal, omitting journal entry explanations.
3. Post the journal to the ledger, extending the account balance and noting whether it is a debit or credit after each posting of the balance.
4. Prepare an unadjusted trial balance as at December 31, 2015.
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