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Journalize the closing entries. Include Posting References, using the account numbers in your spreadsheet. Refer to your answers from Chapter 4, Part 1 to complete this part. If an amount box does not require an entry, leave it blank. DATE ACCOUNT POST. REF. July 31✔ DATE July 31 ✔ Fees Earned ✓ Wages Expense ✔ Office Rent Expense ✓ Equipment Rent Expense ✔ Utilities Expense ✔ Music Expense ✓ Advertising Expense Supplies Expense ✔ Insurance Expense Depreciation Expense Miscellaneous Expense Peyton Smith, Capital ✓ ACCOUNT Peyton Smith, Capital ✓ Peyton Smith, Drawing POST. REF. DEBIT 21,200 DEBIT 1,750 CREDIT 2,940 2,550 1,375 1,215 3,610 1,500 925 225 50 1,855 4,955 CREDIT 1,750 Continuing Problem Chapter 4-Instruction #1 The adjusted trial balance of PS Music as of July 31, 2019 is shown below: Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment PS Music Adjusted Trial Balance July 31, 2019 Accumulated Depreciation-Office Equipment Accounts Payable Wages Payable Unearned Revenue Peyton Smith, Capital Peyton Smith, Drawing Fees Earned Music Expense Wages Expense Office Rent Expense Advertising Expense Equipment Rent Expense Utilities Expense Supplies Expense Insurance Expense Depreciation Expense Miscellaneous Expense Debit Balances 9,945 4,150 275 2,475 7,500 1,750 3,610 2,940 2,550 1,500 1,375 1,215 925 225 50 1,855 42,340 Credit Balances 50 8,350 140 3,600 9,000 21,200 42,340 a. Prepare an income statement for the two months ended July 31, 2019. Enter all amounts as positive number except for any Net Loss. PS Music Income Statement For the Two Months Ended July 31, 2019 Fees Earned ✓ Expenses: Music Expense ✔ Wages Expense ✓ Office Rent Expense ✔ Advertising Expense ✔ Equipment Rent Expense ✔ Utilities Expense ✔ Supplies Expense ✔ Insurance Expense Depreciation Expense ✔ Miscellaneous Expense ✔ Total Expenses Net Income ✓ 3,610 2,940 2,550 1,500 1,375 1,215 925 225 50 1,855 21,200 16,245 4,955 b. Prepare a statement of owner's equity for the two months ended July 31, 2019. (Note: Peyton Smith made investments in PS Music on June 1 and July 1, 2019.) If an amount is zero, enter in a "0". Peyton Smith, capital, June 1, 2019 ✓ PS MUSIC Statement of Owner's Equity For the Two Months Ended July 31, 2019 Investments during the two months ✓ Net Income ✓ Withdrawals ✔ Increase in Owner's Equity ✓ Peyton Smith, capital, July 31, 2019 ✓ 0 X 4,955 4,955 1,750 X 9,000 X 3,205 X 12,205 ✔ c. Prepare a balance sheet as of July 31, 2019. Current Assets: Cash ✔ Accounts Receivable ✓ Supplies ✓ Prepaid Insurance ✓ Total Current Assets Property, Plant and Equipment: Office Equipment ✔ PS MUSIC Balance Sheet July 31, 2019 Total Assets Assets Less Accumulated Depreciation ✓ Total Property, Plant and Equipment 9,945 4,150 275 2,475 7,500 50 16,845 7,450 24,295 Current Liabilities: Accounts Payable ✔ Wages Payable ✔ Unearned Revenue ✔ Total Liabilities Peyton Smith, capital ✔ Total Liabilities and Owner's Equity Liabilities Owner's Equity 8,350 140 3,600 12,090 12,205 24,295 CON UING PROBLEM The following ledger accounts appear below, in this order: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Office Equipment, Accumulated Depreciation - Office Equipment, Accounts Payable, Wages Payable, Unearned Revenue, Peyton Smith, Capital, Peyton Smith, Drawing, and Income Summary - Beginning balances from the textbook have already been entered. - The remaining accounts are found on the next page. An asterisk (*) will appear in the column to the right of an incorrect amount. LEDGERS - Balance Sheet accounts Cash Date 2019 Item 7/8 Advertising Expense 7/11 Fees Earned Post Ref. 7/1 Balance 7/1 Peyton Smith, Capital 7/1 Office Rent Expense 7/1 Prepaid Insurance 7/2 Accounts Receivable 7/3 Unearned Revenue 7/3 Accounts Payable 7/4 Miscellaneous Exense 1 1 ✓ 7/21 Music Expense 7/22 Advertising Expense 7/23 Fees Earned 1 1 7/13 Equipment Rent Expense 1 7/14 Wages Expense 7/16 Fees Earned 2 2 2 7/25 Utilities Expense 7/28 Wages Expense 7/29 Miscellaneous Exense 2 7/30 Fees Earned 7/31 Fees Earned 7/31 Music Expense 7/31 Peyton Smith, Drawing 2 NNNNNN 2 2 2 Dr. 5,000 1,000 7,200 1,000 2,000 750 500 3,000 Cr. 1,750 2,700 250 900 200 700 1,200 620 800 915 1,200 540 1,400 1,250 Dr. Balance 3,920 8,920 7,170 4,470 5,470 12,670 12,420 11,520 11,320 12,320 11,620 10,420 12,420 11,800 11,000 11,750 10,835 9,635 9,095 9,595 12,595 11,195 9,945 Cr. 11 Accounts Receivable Date 7/1 Balance 7/2 Cash 7/23 Fees Earned 7/30 Fees Earned Supplies Date 7/1 Balance 7/18 Supplies Item 7/1 Cash Item Prepaid Insurance Date Item Post Ref. 7-22 Post Ref. ✓ N 2 2 Post Ref. Dr. 1,750 1,000 Dr. 850 Dr. Cr. 1,000 Cr. Cr. Dr. 1,000 1,750 2,750 Dr. Balance Dr. Balance 170 1,020 Balance 2,700 Cr. Cr. Cr. 12 14 15 Office Equipment Date 7/5 Cash Date Item Date Item Accounts Payable Accumulated Depreciation - Office Equipment Post Ref. Item Post Ref. 7/1 Balance 7/3 Cash 7/5 Office Equpment 7/18 Supplies 1 Post Ref. V 1 1 2 Dr. 2 7,500 Dr. Dr. Cr. 250 Cr. 7,500 850 Dr. 7,500 Dr. Balance Dr. Balance Balance Cr. Cr. Cr. 250 7,500 8,350 17 18 21 Wages Payable Date Unearned Revenue Date 7/3 Cash Item 7/1 Balance 7/1 Cash Item Peyton Smith, Capital Date Item Post Ref. Post Ref. 1 Post Ref. ✓ 1 Dr. Dr. Dr. Cr. Cr. 7,200 Cr. 5,000 Dr. Dr. Dr. Balance Balance Balance Cr. Cr. 7,200 Cr. 4,000 9,000 22 23 31 Unearned Revenue Date 7/3 Cash Peyton Smith, Capital Date 7/1 Balance 7/1 Cash Item Date Peyton Smith, Drawing 7/1 Balance 7/31 Cash Item Item Post Ref. 1 Post Ref. V 1 Post Ref. V 2 Dr. Dr. Dr. 1,250 Cr. 7,200 Cr. 5,000 Cr. Dr. Dr. Dr. Balance Balance Balance 500 1,750 Cr. 7,200 Cr. 4,000 9,000 Cr. 23 31 32 The following ledger accounts appear below, in this order: Fees Earned, Wages Expense, Office Rent Expense, Equipment Rent Expense, Utilities Expense, Music Expense, Advertising Expense, Supplies Expense, Insurance Expense, Depreciation Expense, and Miscellaneous Expense Beginning balances from the textbook have already been entered. - The remaining accounts are found on the next page. An asterisk (*) will appear in the column to the right of an incorrect amount. LEDGERS - Income Statement accounts Fees Earned Date 7/1 Balance 7/11 Cash 7/16 Cash 7/23 Accounts Receivable 7/30 Accounts Receivable 7/31 Cash Item Wages Expense Date 7/1 Balance 7/14 Cash 7/28 Cash CONTINUING PROBLEM Item Post Ref. V 2222 → 1 Post Ref. V 1 Dr. Dr. 1,200 1,200 Cr. 1,000 2,000 2,500 1,500 3,000 Cr. Dr. Dr. Balance Balance 400 1,600 2,800 Cr. 6,200 7,200 9,200 11,700 13,200 16,200 Cr. 41 50 Office Rent Expense Item Date 7/1 Balance 7/1 Rent Expense Equipment Rent Expense Item Date 7/1 Balance 7/13 Equipment Expense Utilities Expense Item Post Ref. Date 7/1 Balance 7/25 Utilities Expense V 1 Post Ref. Post Ref. V 1 Dr. 1,750 Dr. 700 Dr. 915 Cr. Cr. Cr. Dr. 800 2,550 Dr. Balance Dr. Balance 675 1,375 Balance 300 1,215 Cr. Cr. Cr. 51 52 53 Music Expense Date 7/1 Balance 7/21 Music Expense 7/31 Music Expense Item Advertising Expense Date Item Supplies Expense 7/1 Balance Date 7/1 Balance V 7/8 Advertising Expense 1 7/22 Advertising Expense 2 Post Ref. Item 722 Post Ref. Post Ref. V Dr. 620 1,400 Dr. 200 800 Dr. Cr. Cr. Cr. Dr. 1,590 2,210 3,610 Dr. Balance Dr. Balance 500 700 1,500 Balance 180 Cr. Cr. Cr. 54 55 56 Insurance Expense Date Depreciation Expense Date Item Date Item Miscellaneous Expense Item Post Ref. Post Ref. Post Ref. 7/1 Balance 7/4 Miscellaneous Expense 7/29 Miscellaneous Expense 2 V Dr. Dr. Dr. 900 540 Cr. Cr. Cr. Dr. Dr. Dr. Balance Balance Balance 415 1,315 1,855 Cr. Cr. Cr. 57 58 59 Journalize the closing entries. Include Posting References, using the account numbers in your spreadsheet. Refer to your answers from Chapter 4, Part 1 to complete this part. If an amount box does not require an entry, leave it blank. DATE ACCOUNT POST. REF. July 31✔ DATE July 31 ✔ Fees Earned ✓ Wages Expense ✔ Office Rent Expense ✓ Equipment Rent Expense ✔ Utilities Expense ✔ Music Expense ✓ Advertising Expense Supplies Expense ✔ Insurance Expense Depreciation Expense Miscellaneous Expense Peyton Smith, Capital ✓ ACCOUNT Peyton Smith, Capital ✓ Peyton Smith, Drawing POST. REF. DEBIT 21,200 DEBIT 1,750 CREDIT 2,940 2,550 1,375 1,215 3,610 1,500 925 225 50 1,855 4,955 CREDIT 1,750 Continuing Problem Chapter 4-Instruction #1 The adjusted trial balance of PS Music as of July 31, 2019 is shown below: Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment PS Music Adjusted Trial Balance July 31, 2019 Accumulated Depreciation-Office Equipment Accounts Payable Wages Payable Unearned Revenue Peyton Smith, Capital Peyton Smith, Drawing Fees Earned Music Expense Wages Expense Office Rent Expense Advertising Expense Equipment Rent Expense Utilities Expense Supplies Expense Insurance Expense Depreciation Expense Miscellaneous Expense Debit Balances 9,945 4,150 275 2,475 7,500 1,750 3,610 2,940 2,550 1,500 1,375 1,215 925 225 50 1,855 42,340 Credit Balances 50 8,350 140 3,600 9,000 21,200 42,340 a. Prepare an income statement for the two months ended July 31, 2019. Enter all amounts as positive number except for any Net Loss. PS Music Income Statement For the Two Months Ended July 31, 2019 Fees Earned ✓ Expenses: Music Expense ✔ Wages Expense ✓ Office Rent Expense ✔ Advertising Expense ✔ Equipment Rent Expense ✔ Utilities Expense ✔ Supplies Expense ✔ Insurance Expense Depreciation Expense ✔ Miscellaneous Expense ✔ Total Expenses Net Income ✓ 3,610 2,940 2,550 1,500 1,375 1,215 925 225 50 1,855 21,200 16,245 4,955 b. Prepare a statement of owner's equity for the two months ended July 31, 2019. (Note: Peyton Smith made investments in PS Music on June 1 and July 1, 2019.) If an amount is zero, enter in a "0". Peyton Smith, capital, June 1, 2019 ✓ PS MUSIC Statement of Owner's Equity For the Two Months Ended July 31, 2019 Investments during the two months ✓ Net Income ✓ Withdrawals ✔ Increase in Owner's Equity ✓ Peyton Smith, capital, July 31, 2019 ✓ 0 X 4,955 4,955 1,750 X 9,000 X 3,205 X 12,205 ✔ c. Prepare a balance sheet as of July 31, 2019. Current Assets: Cash ✔ Accounts Receivable ✓ Supplies ✓ Prepaid Insurance ✓ Total Current Assets Property, Plant and Equipment: Office Equipment ✔ PS MUSIC Balance Sheet July 31, 2019 Total Assets Assets Less Accumulated Depreciation ✓ Total Property, Plant and Equipment 9,945 4,150 275 2,475 7,500 50 16,845 7,450 24,295 Current Liabilities: Accounts Payable ✔ Wages Payable ✔ Unearned Revenue ✔ Total Liabilities Peyton Smith, capital ✔ Total Liabilities and Owner's Equity Liabilities Owner's Equity 8,350 140 3,600 12,090 12,205 24,295 CON UING PROBLEM The following ledger accounts appear below, in this order: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Office Equipment, Accumulated Depreciation - Office Equipment, Accounts Payable, Wages Payable, Unearned Revenue, Peyton Smith, Capital, Peyton Smith, Drawing, and Income Summary - Beginning balances from the textbook have already been entered. - The remaining accounts are found on the next page. An asterisk (*) will appear in the column to the right of an incorrect amount. LEDGERS - Balance Sheet accounts Cash Date 2019 Item 7/8 Advertising Expense 7/11 Fees Earned Post Ref. 7/1 Balance 7/1 Peyton Smith, Capital 7/1 Office Rent Expense 7/1 Prepaid Insurance 7/2 Accounts Receivable 7/3 Unearned Revenue 7/3 Accounts Payable 7/4 Miscellaneous Exense 1 1 ✓ 7/21 Music Expense 7/22 Advertising Expense 7/23 Fees Earned 1 1 7/13 Equipment Rent Expense 1 7/14 Wages Expense 7/16 Fees Earned 2 2 2 7/25 Utilities Expense 7/28 Wages Expense 7/29 Miscellaneous Exense 2 7/30 Fees Earned 7/31 Fees Earned 7/31 Music Expense 7/31 Peyton Smith, Drawing 2 NNNNNN 2 2 2 Dr. 5,000 1,000 7,200 1,000 2,000 750 500 3,000 Cr. 1,750 2,700 250 900 200 700 1,200 620 800 915 1,200 540 1,400 1,250 Dr. Balance 3,920 8,920 7,170 4,470 5,470 12,670 12,420 11,520 11,320 12,320 11,620 10,420 12,420 11,800 11,000 11,750 10,835 9,635 9,095 9,595 12,595 11,195 9,945 Cr. 11 Accounts Receivable Date 7/1 Balance 7/2 Cash 7/23 Fees Earned 7/30 Fees Earned Supplies Date 7/1 Balance 7/18 Supplies Item 7/1 Cash Item Prepaid Insurance Date Item Post Ref. 7-22 Post Ref. ✓ N 2 2 Post Ref. Dr. 1,750 1,000 Dr. 850 Dr. Cr. 1,000 Cr. Cr. Dr. 1,000 1,750 2,750 Dr. Balance Dr. Balance 170 1,020 Balance 2,700 Cr. Cr. Cr. 12 14 15 Office Equipment Date 7/5 Cash Date Item Date Item Accounts Payable Accumulated Depreciation - Office Equipment Post Ref. Item Post Ref. 7/1 Balance 7/3 Cash 7/5 Office Equpment 7/18 Supplies 1 Post Ref. V 1 1 2 Dr. 2 7,500 Dr. Dr. Cr. 250 Cr. 7,500 850 Dr. 7,500 Dr. Balance Dr. Balance Balance Cr. Cr. Cr. 250 7,500 8,350 17 18 21 Wages Payable Date Unearned Revenue Date 7/3 Cash Item 7/1 Balance 7/1 Cash Item Peyton Smith, Capital Date Item Post Ref. Post Ref. 1 Post Ref. ✓ 1 Dr. Dr. Dr. Cr. Cr. 7,200 Cr. 5,000 Dr. Dr. Dr. Balance Balance Balance Cr. Cr. 7,200 Cr. 4,000 9,000 22 23 31 Unearned Revenue Date 7/3 Cash Peyton Smith, Capital Date 7/1 Balance 7/1 Cash Item Date Peyton Smith, Drawing 7/1 Balance 7/31 Cash Item Item Post Ref. 1 Post Ref. V 1 Post Ref. V 2 Dr. Dr. Dr. 1,250 Cr. 7,200 Cr. 5,000 Cr. Dr. Dr. Dr. Balance Balance Balance 500 1,750 Cr. 7,200 Cr. 4,000 9,000 Cr. 23 31 32 The following ledger accounts appear below, in this order: Fees Earned, Wages Expense, Office Rent Expense, Equipment Rent Expense, Utilities Expense, Music Expense, Advertising Expense, Supplies Expense, Insurance Expense, Depreciation Expense, and Miscellaneous Expense Beginning balances from the textbook have already been entered. - The remaining accounts are found on the next page. An asterisk (*) will appear in the column to the right of an incorrect amount. LEDGERS - Income Statement accounts Fees Earned Date 7/1 Balance 7/11 Cash 7/16 Cash 7/23 Accounts Receivable 7/30 Accounts Receivable 7/31 Cash Item Wages Expense Date 7/1 Balance 7/14 Cash 7/28 Cash CONTINUING PROBLEM Item Post Ref. V 2222 → 1 Post Ref. V 1 Dr. Dr. 1,200 1,200 Cr. 1,000 2,000 2,500 1,500 3,000 Cr. Dr. Dr. Balance Balance 400 1,600 2,800 Cr. 6,200 7,200 9,200 11,700 13,200 16,200 Cr. 41 50 Office Rent Expense Item Date 7/1 Balance 7/1 Rent Expense Equipment Rent Expense Item Date 7/1 Balance 7/13 Equipment Expense Utilities Expense Item Post Ref. Date 7/1 Balance 7/25 Utilities Expense V 1 Post Ref. Post Ref. V 1 Dr. 1,750 Dr. 700 Dr. 915 Cr. Cr. Cr. Dr. 800 2,550 Dr. Balance Dr. Balance 675 1,375 Balance 300 1,215 Cr. Cr. Cr. 51 52 53 Music Expense Date 7/1 Balance 7/21 Music Expense 7/31 Music Expense Item Advertising Expense Date Item Supplies Expense 7/1 Balance Date 7/1 Balance V 7/8 Advertising Expense 1 7/22 Advertising Expense 2 Post Ref. Item 722 Post Ref. Post Ref. V Dr. 620 1,400 Dr. 200 800 Dr. Cr. Cr. Cr. Dr. 1,590 2,210 3,610 Dr. Balance Dr. Balance 500 700 1,500 Balance 180 Cr. Cr. Cr. 54 55 56 Insurance Expense Date Depreciation Expense Date Item Date Item Miscellaneous Expense Item Post Ref. Post Ref. Post Ref. 7/1 Balance 7/4 Miscellaneous Expense 7/29 Miscellaneous Expense 2 V Dr. Dr. Dr. 900 540 Cr. Cr. Cr. Dr. Dr. Dr. Balance Balance Balance 415 1,315 1,855 Cr. Cr. Cr. 57 58 59

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a The income statment is calculated as b... View the full answer