Chapter 2-instruction 2 The following transactions were completed by PS Music during July, the second month of the business's operations: Analyze and journalize each transaction in the two-column journal below. Include Posting References, using the account numbers in your spreadsheet. If an amount box does not require an entry, leave it blank. July 1: Peyton Smith made an additional Investment in PS Music by depositing $5,000 in PS Music's checking account. Credit Account Cash Peyton Smith, Capital Post. Ref. Debit 115,000 315 ,000 July 1: 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. Credit Account Office Rent Expense Cash Post. Ref. Debit 511,750 11 1,750 July 11 Paid a premium of $2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period Account Post. Ref. Debit Credit Previous Next Guck My Work more Check My Work uses remaining Wem compreensive insurance policy covering ty, tren g er Credit Account Prepaid Insurance Cash Post. Ref. 15 11 Debit 2,700 2 ,700 July 2: Received $1,000 cash from customers on account. Account Credit Post. Ref. 11 Debit 1,000 Cash Accounts Receivable 12 1,000 July 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 MD at $40 per hour. In accordance with the contract, Peyton received 87,200 from KXMD as an advance payment for the first two months Account Credit Post. Ref. 11 Debit 7,200 Cash & Unearned Revenue 7,200 ART.1 July 3: Paid $250 to creditors on account. ART 2 Account Credit Post. Ref. 21 Debit 250 ART3 Accounts Payable ART4 Cash July 4: Pald an attorney $900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense) Credit Account Miscellaneous Expence Post. Ref. 59 Debit 9 00 900 July 5: Purchased office equipment on account from Office Mart, $7,500 Account Past. Ref. Debit Credit Office Equipment 17 7,500 Accounts Payable 21 7,500 PART.1 July 8: Paid for a newspaper advertisement, $200. PART 2 Credit PART3 Account Advertising Expense Cash V Post. Ref. 55 11 Debit 200 PART4 . 200 July 11Received $1,000 for serving as a disc jockey for a party. Credit Account Cash Fees Earned Post. Ref. 11 41 Debit 1,000 O 1,000 July 13: Pald $700 to a local audio electronics store for rental of digital recording equipment Credit Account Equipment Rent Expense Cash Post. Ref. 52 11 Debit 700 700 1.PART.1 July 14: Paid wages of $1,200 to receptionist and part-time assistant 1.PART 2 Credit Account Wages Expense Post. Ref. 50 11 Debit 1,200 1.PART.3 Cash 1,200 1.PART.4 July 16: Received $2,000 for serving as a disc jockey for a wedding reception Account Credit Post. Ref. Debit 112,000 Cash & Fees Earned 41 2,000 July 18: Purchased supplies on account, $850. Account Credit Post. Ref. 14 Debit 850 Supplies Accounts Payable 217 850 July 21: Paid $620 to Upload Music for use of its current music demos in making various music sets. July 21: Paid $620 to Upload Music for use of its current music demos in making various music sets. Credit Account Music Expense v Cash Post. Ref. 54 11 Debit 620 620 July 22: Paid $800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. Credit Account Advertising Expense Post. Ref. 55 Debit 800 11 800 July 23: Served as disc jockey for a party for $2,500. Received $750, with the remainder due August 4, 2019. Account Credit Cash Post. Ref. Debit 11750 12 1,750 Accounts Receivable Fees Earned 41 2.500 July 27: Pald electric bill, $915. Credit Account Utilities Expense v Cash Post. Ref. 53 11 Debit 915 915 July 28: Paid wages of $1,200 to receptionist and part-time assistant Account Post. Ref. Credit Debit 1,200 Wages Expense Cash V 11 1,200 July 29: Paid miscellaneous expenses, $540. Credit Account Miscellaneous Expense Post. Ref. Debit 59540 11 540 July 30: Served as a disc jockey for a charity ball for $1,500. Received $500, with the remainder due on August 9, 2019. July 30: Served as a disc jockey for a charity ball for $1,500. Received $500, with the remainder due on August 9, 2019. Account Post. Ref. Debit Credit Cash Accounts Receivable Fees Earned 11 500 121,000 41 1,500 July 31: Received $3,000 for serving as a disc jockey for a party. Account Credit Post. Ref. 11 41 Debit 3,000 Cash Fees Earned 3,000 July 31: Paid $1,400 royalties (music expense) to National Music Clearing for use of various artists' music during July. Account Credit Post. Ref. 54 Debit 1,400 Music Expense Cash v 1,400 July 31: Withdrew $1,250 cash from PS Music for personal use. Account Credit Post. Ref. 32 11 Debit 1,250 Peyton Smith, Drawing Cash 0 1,250 Feedback Check My Work 01.PART.1 PS MUSIC Unadjusted Trial Balance July 31, 2019 -01.PART.2 Debit Balances Credit Balances -01.PART.3 Cash --01.PART.4 Accounts Receivable Supplies Prepaid Insurance Office Equipment Accounts Payable Unearned Revenue Peyton Smith, Capital Peyton Smith, Drawing Fees Earned Wages Expense Office Rent Expense Equipment Rent Expense Utilities Expense Music Expense Advertising Expense Supplies Expense Miscellaneous Expense 4/4 items Check My Work 2 more Check My Work uses remaining. Continuing Problem Chapter 2-Instruction #1 Save a copy of the spreadsheet by clicking on the "Spreadsheet" here. You will need this completed spreadsheet for the remaining parts of this continuing Problem. Be sure to save the spreadsheet in a safe place for future use. 400 800 PS Music's chart of accounts and the balance of accounts as of July 1, 2019 (all normal balances), are as follows: 11 Cash $3,920 41 Fees Eamed $6,200 12 Accounts Receivable 1,000 50 Wages Expense 14 Supplies 170 51 Omce Rent Expense 15 Prepaid Insurance 52 Equipment Rent Expense 675 17 Office Equipment - 53 Utilities Expense 300 21 Accounts Payable 250 54 Music Expense 1,590 23 Unearned Revenue - 55 Advertising Expense 31 Peyton Smith, Capital 4,000 56 Supplies Expense 32 Peyton Smith, Drawing 500 59 Miscellaneous Expense 415 180 Required: Review the spreadsheet and notice that the July 1, 2019, account balances have been entered in the appropriate balance column of the four-column accounts. The word Balance has been entered in the Item column, and a check mark (V) has been entered in the Posting Reference column