Chapter 3 Continuing Problem Continuing Problem Chapter 4 - Instruction #1 The adjusted trial balance of PS Music as of July 31, 2018 is shown below: PS Music Adjusted Trial Balance July 31, 2018 Account No. Credit Balances Debit Balances 9,945 4,150 Cash 11 Accounts Receivable 12 14 275 15 2,475 17 7,500 Supplies Prepaid Insurance Office Equipment Accumulated Depreciation Office Equipment Accounts Payable 18 50 8,350 21 22 Wages Payable 140 Unearned Revenue 23 3,600 31 9,000 Common Stock Dividends 33 1,750 Fees Earned 41 21,200 Wages Expense 50 2,940 51 2,550 52 1,375 53 54 Office Rent Expense Equipment Rent Expense Utilities Expense Music Expense Advertising Expense Supplies Expense Insurance Expense Depreciation Expense Miscellaneous Expense 1,215 3,610 1,500 55 56 925 57 225 58 59 50 1,855 42,340 42,340 a. Prepare an income statement for the two months ended July 31, 2018. PS Music Income Statement For the Two Months Ended July 31, 2018 Fees Earned 21,200 Expenses: Wages Expense 2,940 Office Rent Expense 2,550 Equipment Rent Expense 1,375 Utilities Expense 1,215 Music Expense 3,610 Advertising Expense 1,500 Supplies Expense 925 Insurance Expense 225 Depreciation Expense 50 Miscellaneous Expense 1,855 Total Expenses 16,245 Net Income 4,955 b. Prepare a retained earnings statement for the two months ended July 31, 2018. (Note: Peyton Smith made investments in PS Music on June 1 and July 1, 2018.) If an amount is zero, enter in a "0". If a net loss is incurred or there is a decrease in owner's equity, enter that amount as a negative number using a minus sign. PS MUSIC Retained Earnings Statement For the Two Months Ended July 31, 2018 Retained Earnings, June 1, 2018 V 0 Net Income 4,955 Dividends -1,750 Change in retained earnings 3,205 Retained Earnings, July 31, 2018 V 3,205 c. Prepare a classified balance sheet as of July 31, 2018. PS MUSIC Balance Sheet July 31, 2018 Assets Current Assets: Cash 9,945 Accounts Receivable 4,150 Supplies 275 Prepaid Insurance 2,475 Total Current Assets 16,845 Property, Plant and Equipment: Office Equipment 7,500 Accumulated Depreciation office equipment -50 Total Property, Plant and Equipment 7,450 Total Assets 24,295 Liabilities Current Liabilities: Accounts Payable 8,350 Wages Payable 140 Unearned Revenue 3,600 Total Liabilities 12,090 Stockholders' Equity Common Stock 9,000 Retained Earnings 3,205 Total stockholders' equity 12,205 Total liabilities and stockholders' equity 24,295 Chapter 3 Continuing Problem Continuing Problem Chapter 1 - Instruction ? Journaliste dosing entries. Indude Pouting Reces, using the account numbers in your prehest. The retained earnings account is 32 and the income mmary account is in the edge of PS Music Refer to your newers from Chapter 4, Part Ito complete this part an amount box does not require an entry leave it back DATE ACCOUNT POST. REF. DEBET CREDIT July 31 POST. RE. DEBIT CREDIT DATE July 31 ACCOUNT Income Wages me Office Expense Equipment Rent Expense Music Expert Advertising upone Supplies Imance Depreciation Expense Miscellane DATE ACCOUNT POST. REF. DEBIT CREDIT DATE ACCOUNT POST. REF. DEBIT CREDIT Chapter 4. Instruction 4 Refer to the spreadsheet that you used to put the closing entries in Chapter 4 Part 3 Post-Casing Trillance July 31, 2018 Debit Balances Credit Balances