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Continuing Problem Chapter 4 - Instruction #1
The adjusted trial balance of PS Music as of July 31, 20Y5 is shown below:
Account Account No. Debit Balances Credit Balances Cash 11 9,945 Accounts Receivable 12 4,150 Supplies 14 275 Prepaid Insurance 15 2,475 Office Equipment 17 7,500 Accumulated Depreciation-Office Equipment 18 50 Accounts Payable 21 8,350 Wages Payable 22 140 Unearned Revenue 23 3,600 Common Stock 31 9,000 Dividends 33 1,750 Fees Earned 41 21,200 Music Expense 54 3,610 Wages Expense 50 2,940 Office Rent Expense 51 2,550 Advertising Expense 55 1,500 Equipment Rent Expense 52 1,375 Utilities Expense 53 1,215 Supplies Expense 56 925 Insurance Expense 57 225 Depreciation Expense 58 50 Miscellaneous Expense 59 1,855 Total 42,340 42,340
a. Prepare an income statement for the two months ended July 31, 20Y5.
PS Music Income Statement For the Two Months Ended July 31, 20Y5 Line Item Description Amount Amount Advertising ExpenseEquipment Rent ExpenseFees EarnedMiscellaneous ExpenseMusic ExpenseFees Earned
$fill in the blank 2 Expenses: Fees EarnedMusic ExpensePrepaid InsuranceSuppliesWages PayableMusic Expense
$fill in the blank 4 Accounts ReceivableFees EarnedNet IncomePeyton Smith, CapitalWages ExpenseWages Expense
fill in the blank 6 CashFees EarnedOffice Rent ExpensePeyton Smith, DrawingSuppliesOffice Rent Expense
fill in the blank 8 Accounts ReceivableAdvertising ExpenseCashFees EarnedUnearned RevenueAdvertising Expense
fill in the blank 10 Accounts PayableCashEquipment Rent ExpenseFees EarnedSuppliesEquipment Rent Expense
fill in the blank 12 Accounts ReceivableCashFees EarnedPeyton Smith, CapitalUtilities ExpenseUtilities Expense
fill in the blank 14 Accounts PayableAccounts ReceivableFees EarnedSuppliesSupplies ExpenseSupplies Expense
fill in the blank 16 Fees EarnedInsurance ExpensePrepaid InsuranceSuppliesWages PayableInsurance Expense
fill in the blank 18 Accumulated Depreciation-Office EquipmentDepreciation ExpenseFees EarnedOffice EquipmentWages PayableDepreciation Expense
fill in the blank 20 Accounts PayableAccounts ReceivableCashMiscellaneous ExpensePrepaid InsuranceMiscellaneous Expense
fill in the blank 22 Total Expenses fill in the blank 23 Net IncomeNet LossNet Income
$fill in the blank 25
b. Prepare a statement of stockholders equity for the two months ended July 31, 20Y5. (Note : Peyton Smith made investments in PS Music on June 1 and July 1, 20Y5.) If an amount is zero, enter in a "0". If a net loss is incurred or there is a decrease in owners equity, enter that amount as a negative number using a minus sign.
PS MUSIC Statement of Stockholders Equity For the Two Months Ended July 31, 20Y5 Line Item Description Common Stock Retained Earnings Total Balances, June 1, 20Y5Balances, July 31, 20Y5CashDividendsNet incomeBalances, June 1, 20Y5
$fill in the blank 27 $fill in the blank 28 $fill in the blank 29 Balances, June 1, 20Y5Balances, July 31, 20Y5CashIssued common stockNet lossIssued common stock
fill in the blank 31 fill in the blank 32 fill in the blank 33 Balances, June 1, 20Y5Balances, July 31, 20Y5CashNet incomeNet lossNet income
fill in the blank 35 fill in the blank 36 fill in the blank 37 Balances, June 1, 20Y5Balances, July 31, 20Y5CashDividendsNet lossDividends
fill in the blank 39 fill in the blank 40 fill in the blank 41 Balances, June 1, 20Y5Balances, July 31, 20Y5CashDividendsNet lossBalances, July 31, 20Y5
$fill in the blank 43 $fill in the blank 44 $fill in the blank 45
Journalize the closing entries. Include Posting References, using the account numbers in your spreadsheet. The retained earnings account is #32 in the ledger of PS Music. 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. DEBIT CREDIT 20Y5 Closing Entries July 1July 5July 14July 24July 31July 1
Advertising ExpenseDepreciation ExpenseEquipment Rent ExpenseFees EarnedMusic ExpenseFees Earned
fill in the blank 3 fill in the blank 4 fill in the blank 5 CashFees EarnedLandWages ExpenseWages PayableWages Expense
fill in the blank 7 fill in the blank 8 fill in the blank 9 Accounts ReceivableCashDividendsOffice EquipmentOffice Rent ExpenseOffice Rent Expense
fill in the blank 11 fill in the blank 12 fill in the blank 13 Accounts ReceivableCashEquipment Rent ExpenseOffice EquipmentRetained EarningsEquipment Rent Expense
fill in the blank 15 fill in the blank 16 fill in the blank 17 Accounts PayableDividendsFees EarnedUnearned RevenueUtilities ExpenseUtilities Expense
fill in the blank 19 fill in the blank 20 fill in the blank 21 Accounts PayableMusic ExpenseOffice EquipmentPrepaid InsuranceRetained EarningsMusic Expense
fill in the blank 23 fill in the blank 24 fill in the blank 25 Accounts ReceivableAdvertising ExpenseCashDividendsSuppliesAdvertising Expense
fill in the blank 27 fill in the blank 28 fill in the blank 29 Fees EarnedLandRetained EarningsSuppliesSupplies ExpenseSupplies Expense
fill in the blank 31 fill in the blank 32 fill in the blank 33 CashDividendsInsurance ExpenseOffice RentPrepaid InsuranceInsurance Expense
fill in the blank 35 fill in the blank 36 fill in the blank 37 Accumulated DepreciationDepreciation ExpenseOffice EquipmentRetained EarningsUnearned RevenueDepreciation Expense
fill in the blank 39 fill in the blank 40 fill in the blank 41 Accounts ReceivableCashFees EarnedMiscellaneous ExpenseWages PayableMiscellaneous Expense
fill in the blank 43 fill in the blank 44 fill in the blank 45 Accounts PayableDividendsFees EarnedRetained EarningsUnearned RevenueUnearned Revenue
fill in the blank 47 fill in the blank 48 fill in the blank 49
DATE ACCOUNT POST. REF. DEBIT CREDIT July 1July 5July 14July 24July 31July 1
Depreciation ExpenseDividendsEquipment Rent ExpenseInsurance ExpenseRetained EarningsRetained Earnings
fill in the blank 52 fill in the blank 53 fill in the blank 54 Depreciation ExpenseDividendsEquipment Rent ExpenseInsurance ExpenseRetained EarningsInsurance Expense
fill in the blank 56 fill in the blank 57 fill in the blank 58
PS Music Post-Closing Trial Balance July 31, 20Y5 Account Debit Balances Credit Balances Accounts PayableCashCommon StockFees EarnedUnearned RevenueAccounts Payable
fill in the blank 2 fill in the blank 3 Accounts PayableAccounts ReceivableCommon StockFees EarnedUnearned RevenueAccounts Receivable
fill in the blank 5 fill in the blank 6 Accounts PayableCommon StockFees EarnedSuppliesUnearned RevenueFees Earned
fill in the blank 8 fill in the blank 9 Accounts PayableCommon StockFees EarnedPrepaid InsuranceUnearned RevenueFees Earned
fill in the blank 11 fill in the blank 12 Accounts PayableCommon StockFees EarnedOffice EquipmentUnearned RevenueUnearned Revenue
fill in the blank 14 fill in the blank 15 Accounts PayableAccumulated Depreciation-Office EquipmentCommon StockFees EarnedUnearned RevenueFees Earned
fill in the blank 17 fill in the blank 18 Accounts PayableAccounts ReceivableCashSupplies ExpenseWages ExpenseWages Expense
fill in the blank 20 fill in the blank 21 Accounts ReceivableCashSupplies ExpenseWages ExpenseWages PayableWages Expense
fill in the blank 23 fill in the blank 24 Accounts ReceivableCashMusic ExpenseUnearned RevenueWages ExpenseMusic Expense
fill in the blank 26 fill in the blank 27 Accounts ReceivableCashCommon StockMusic ExpenseWages ExpenseCommon Stock
fill in the blank 29 fill in the blank 30 Accounts PayableCashCommon StockRetained EarningsWages ExpenseCommon Stock
fill in the blank 32 fill in the blank 33 Total fill in the blank 34 fill in the blank 35
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