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.

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 Earned	$6,200
12	Accounts Receivable	1,000		50	Wages Expense	400
14	Supplies	170		51	Office Rent Expense	800
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	500
31	Peyton Smith, Capital	4,000		56	Supplies Expense	180
32	Peyton Smith, Drawing	500		59	Miscellaneous Expense	415

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 () has been entered in the Posting Reference column.

Continuing Problem 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.

Account	Post. Ref.	Debit	Credit

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.

Account	Post. Ref.	Debit	Credit

July 1: 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

July 2: Received $1,000 cash from customers on account.

Account	Post. Ref.	Debit	Credit

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 KXMD at $40 per hour. In accordance with the contract, Peyton received $7,200 from KXMD as an advance payment for the first two months.

Account	Post. Ref.	Debit	Credit

July 3: Paid $250 to creditors on account.

Account	Post. Ref.	Debit	Credit

July 4: Paid an attorney $900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.)

Account	Post. Ref.	Debit	Credit

July 5: Purchased office equipment on account from Office Mart, $7,500.

Account	Post. Ref.	Debit	Credit

July 8: Paid for a newspaper advertisement, $200.

Account	Post. Ref.	Debit	Credit

July 11: Received $1,000 for serving as a disc jockey for a party.

Account	Post. Ref.	Debit	Credit

July 13: Paid $700 to a local audio electronics store for rental of digital recording equipment.

Account	Post. Ref.	Debit	Credit

July 14: Paid wages of $1,200 to receptionist and part-time assistant.

Account	Post. Ref.	Debit	Credit

July 16: Received $2,000 for serving as a disc jockey for a wedding reception.

Account	Post. Ref.	Debit	Credit

July 18: Purchased supplies on account, $850.

Account	Post. Ref.	Debit	Credit

July 21: Paid $620 to Upload Music for use of its current music demos in making various music sets.

Account	Post. Ref.	Debit	Credit

July 22: Paid $800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July.

Account	Post. Ref.	Debit	Credit

July 23: Served as disc jockey for a party for $2,500. Received $750, with the remainder due August 4, 2019.

Account	Post. Ref.	Debit	Credit

July 27: Paid electric bill, $915.

Account	Post. Ref.	Debit	Credit

July 28: Paid wages of $1,200 to receptionist and part-time assistant.

Account	Post. Ref.	Debit	Credit

July 29: Paid miscellaneous expenses, $540.

Account	Post. Ref.	Debit	Credit

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

July 31: Received $3,000 for serving as a disc jockey for a party.

Account	Post. Ref.	Debit	Credit

July 31: Paid $1,400 royalties (music expense) to National Music Clearing for use of various artists' music during July.

Account	Post. Ref.	Debit	Credit

July 31: Withdrew $1,250 cash from PS Music for personal use.

Account	Post. Ref.	Debit	Credit

Continuing Problem Chapter 2-Instruction #3

Post the journal entries completed in Chapter 2 Part 2 to the ledgers in the spreadsheet you saved in Chapter 2 Part 1. When entering the Posting References, use journal page 1 for transactions from July 1-14, and use journal page 2 for transactions from July 16-31. Extend the account balance to the appropriate balance column after each posting. Be sure to save your work in the spreadsheet.

Continuing Problem Chapter 2-Instruction #4

Refer to your answers from Chapter 2, Part 3 to complete this part.

Prepare an unadjusted trial balance as of July 31, 2019.