Question

The transactions completed by PS Music during June 2018 weredescribed at the end of Chapter 1. The following transactions werecompleted during July, the second month of the business’soperations: Jul. 1 Peyton Smith made an additional investment in PSMusic in exchange for common stock by depositing $5,000 in PSMusic’s checking account. 1 Instead of continuing to share officespace with a local real estate agency, Peyton decided to rentoffice space near a local music store. Paid rent for July, $1,750.1 Paid a premium of $2,700 for a comprehensive insurance policycovering liability, theft, and fire. The policy covers a one-yearperiod. 2 Received $1,000 on account. 3 On behalf of PS Music,Peyton signed a contract with a local radio station, KXMD, toprovide guest spots for the next three months. The contractrequires PS Music to provide a guest disc jockey for 80 hours permonth for a monthly fee of $3,600. Any additional hours beyond 80will be billed to KXMD at $40 per hour. In accordance with thecontract, Peyton received $7,200 from KXMD as an advance paymentfor the first two months. 3 Paid $250 on account. 4 Paid anattorney $900 for reviewing the July 3 contract with KXMD. (Recordas Miscellaneous Expense.) 5 Purchased office equipment on accountfrom Office Mart, $7,500. 8 Paid for a newspaper advertisement,$200. 11 Received $1,000 for serving as a disc jockey for a party.13 Paid $700 to a local audio electronics store for rental ofdigital recording equipment. 14 Paid wages of $1,200 toreceptionist and part-time assistant. Enter the followingtransactions on Page 2 of the two-column journal: Jul. 16 Received$2,000 for serving as a disc jockey for a wedding reception. 18Purchased supplies on account, $850. 21 Paid $620 to Upload Musicfor use of its current music demos in making various music sets. 22Paid $800 to a local radio station to advertise the services of PSMusic twice daily for the remainder of July. 23 Served as discjockey for a party for $2,500. Received $750, with the remainderdue August 4, 2018. 27 Paid electric bill, $915. 28 Paid wages of$1,200 to receptionist and part-time assistant. 29 Paidmiscellaneous expenses, $540. 30 Served as a disc jockey for acharity ball for $1,500. Received $500, with the remainder due onAugust 9, 2018. 31 Received $3,000 for serving as a disc jockey fora party. 31 Paid $1,400 royalties (music expense) to National MusicClearing for use of various artists’ music during July. 31 Paiddividends, $1,250. PS Music’s chart of accounts and the balance ofaccounts as of July 1, 2018 (all normal balances), are as follows:11 Cash $3,920 12 Accounts Receivable 1,000 14 Supplies 170 15Prepaid Insurance — 17 Office Equipment — 21 Accounts Payable 25023 Unearned Revenue — 31 Common Stock 4,000 33 Dividends 500 41Fees Earned 6,200 50 Wages Expense 400 51 Office Rent Expense 80052 Equipment Rent Expense 675 53 Utilities Expense 300 54 MusicExpense 1,590 55 Advertising Expense 500 56 Supplies Expense 180 59Miscellaneous Expense 415 Required: 1. Enter the July 1, 2018,account balances in the appropriate balance column of a four-columnaccount. No entry is needed for accounts with a zero balance. WriteBalance in the Item column, and select a check mark in the PostingReference column. (Note: Verify the equality of the debit andcredit balances in the ledger before proceeding with the nextinstruction.) 2. Analyze and journalize each transaction in atwo-column journal beginning on Page 1, omitting journal entryexplanations. Refer to the Chart of Accounts for exact wording ofaccount titles. 3. Post the journal to the ledger, extending theaccount balance to the appropriate balance column after eachposting. Indicate a zero balance by inserting a 0 (zero) in eitherof the Balance columns opposite the entry. 4. Prepare an unadjustedtrial balance as of July 31, 2018. none of the previous answershave the entire answers