Chapter 1 Introduction to Accounting and Business 47 Continuing Problem v 2. Net income $1,340 Peyton Smith enjoys listening to all types of music and owns countless CDs Over the years, Peyton has gained a local reputation for knowledge of music from cdlassical to rap and the ability to put together sets of recordings that appeal to all ages During the last several moths, Peyton served as a st dK kdey on a local ad station. In addition, Peyton has entertained at several friends parties as the host deejay on June 1, 2016, Peyton blished a corporation known as PS Mui. Using an extensive collection of music MP3 files, Pcyton will serve as a disc jockey on a fee basis for weddings, college parties, and other events During June, Peyton entered into the June 1. Deposited $4,000 in a checking account in the name of Ps Music in eschange for 2. Received $3,500 from a local radio station for serving as the guest disc jockey for June 2. Agreed to share office space with a local real estate agency, Pinnacle Realty. PS Music will pay onefourth ofthe rent. In addition, PS Music 0eed to pay a por tion of the wages of the receptionist and to pay one-fourth of the ucilities. Paid $800 for the rent of the office Purchased supplies from City Office Supply Co. for $350. Agreed to pay $100 within 10 days and the remainder by July 5, 2016 6 Paid $500 to a local radio station to advertise the services of Ps Music twice daily for two weeks 8. Paid $675 to a local electronics store for renting digital reconding eqaipment 12. Paid $350 (music expense) to Cool Music for the use of its cwmnt to make various music sets. 15. Paid City Office Supply Co. $100 on account 16. Received $300 from a dentist for providing two music sets for the dentist to play 22. Served as disc jockey for a wedding party. The father of the bride agreed to pay 25. Received $500 for serving as the disc jockry for a cancer charity baill hosted by 29. Paid $240 (music expense) to Galaxy Music for the use of its library of music for her patients. 1,000 in July the local hospital demos 50. Recelved $900 for serving as PS disc jockey for a local cdlub's monthly dance 30. Paid Pinnacle Realty $400 for PS Music's share of the rocptionist's wages for June 50 Paid Pinnacle Realty $300 for PS Music's share of the utilities for June 0. Determined that the cost of supplies on hand is $170. Therefone, the cost of sup- plics used during the month was 5180 30. Paid for miscellaneous expenses, $415 50 Paid $1,000 royalties (music expense) to National Musik Clearing for use of vari- ous artists music during the month 0. Paid dividends, $500 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings Accounts Common Fees Muskc RenttAdvsng Wages inies Supplies Misc Cash + Rec+Supplies PyableStock-Dividends+Eamed-ExpExpExp 2. Prepare an income statement for PS Music for the month ended June 30, 2016 . Prepare a retained earnings statement for PS Music for the month ended June 30, 2016 4. Prepare a balance sheet for PS Music as of June 30, 2016