The unadjusted trial balance of PS Music as of July 31, 2016, alongwith the adjustment data for the two months ended July 31, 2016,are shown in Chapter 3. Based upon the adjustment data, thefollowing adjusted trial balance was prepared:
PS Music
ADJUSTED TRIAL BALANCE
July 31, 2016
ACCOUNT TITLE DEBIT CREDIT
1
Cash
9,945.00
2
Accounts Receivable
4,150.00
3
Supplies
275.00
4
Prepaid Insurance
2,475.00
5
Office Equipment
7,500.00
6
Accumulated Depreciation-Office Equipment
50.00
7
Accounts Payable
8,350.00
8
Wages Payable
140.00
9
Unearned Revenue
3,600.00
10
Common Stock
9,000.00
11
Retained Earnings
12
Dividends
1,750.00
13
Income Summary
14
Fees Earned
21,200.00
15
Wages Expense
2,940.00
16
Office Rent Expense
2,550.00
17
Equipment Rent Expense
1,375.00
18
Utilities Expense
1,215.00
19
Music Expense
3,610.00
20
Advertising Expense
1,500.00
21
Supplies Expense
925.00
22
Insurance Expense
225.00
23
Depreciation Expense
50.00
24
Miscellaneous Expense
1,855.00
25
Totals
42,340.00
42,340.00
Required:
1. (Optional) Using the data from Chapter 3, prepare anend-of-period spreadsheet on a sheet of paper or using spreadsheetsoftware.
2. Prepare an income statement, a retained earnings statement, anda balance sheet.*
3.
A. Journalize the closing entries. Refer to the Chart ofAccounts for exact wording of account titles.
B. Post the closing entries. The income summary account is #34 inthe ledger of PS Music. Indicate closed accounts by inserting a 0(zero) in either of the Balance columns opposite the closing entry.No entry is required in the Item column.
4. Prepare a post-closing trial balance.
* For guidance in completing the financial statements, be sureto read the instructions above each statement carefully.
CHART OF ACCOUNTSPS MusicGeneral Ledger
ASSETS
11 Cash
12 Accounts Receivable
14 Supplies
15 Prepaid Insurance
17 Office Equipment
18 Accumulated Depreciation-Office Equipment
LIABILITIES
21 Accounts Payable
22 Wages Payable
23 Unearned Revenue
EQUITY
31 Common Stock
32 Retained Earnings
33 Dividends
34 Income Summary
REVENUE
41 Fees Earned
EXPENSES
50 Wages Expense
51 Office Rent Expense
52 Equipment Rent Expense
53 Utilities Expense
54 Music Expense
55 Advertising Expense
56 Supplies Expense
57 Insurance Expense
58 Depreciation Expense
59 Miscellaneous Expense
LabelsCash flows from financing activitiesCash flows frominvesting activitiesCash flows from operating activitiesCurrentassetsCurrent liabilitiesExpensesFor the Two Months Ended July 31,2016July 31, 2016Property, plant, and equipmentAmountDescriptionsAdd dividendsDecrease in retained earningsIncrease inretained earningsNet decrease in cash during June and JulyNetincrease in cash during June and JulyLess dividendsNet incomeNetlossRetained earnings, June 1, 2016Retained earnings, July 31,2016Total assetsTotal current assetsTotal expensesTotalliabilitiesTotal liabilities and stockholdersâ equityTotalproperty, plant, and equipmentTotal stockholdersâ equity
The unadjusted trial balance of PS Music as of July 31, 2016, alongwith the adjustment data for the two months ended July 31, 2016,are shown in Chapter 3. Based upon the adjustment data, thefollowing adjusted trial balance was prepared:
PS Music
ADJUSTED TRIAL BALANCE
July 31, 2016
ACCOUNT TITLE DEBIT CREDIT
1
Cash
9,945.00
2
Accounts Receivable
4,150.00
3
Supplies
275.00
4
Prepaid Insurance
2,475.00
5
Office Equipment
7,500.00
6
Accumulated Depreciation-Office Equipment
50.00
7
Accounts Payable
8,350.00
8
Wages Payable
140.00
9
Unearned Revenue
3,600.00
10
Common Stock
9,000.00
11
Retained Earnings
12
Dividends
1,750.00
13
Income Summary
14
Fees Earned
21,200.00
15
Wages Expense
2,940.00
16
Office Rent Expense
2,550.00
17
Equipment Rent Expense
1,375.00
18
Utilities Expense
1,215.00
19
Music Expense
3,610.00
20
Advertising Expense
1,500.00
21
Supplies Expense
925.00
22
Insurance Expense
225.00
23
Depreciation Expense
50.00
24
Miscellaneous Expense
1,855.00
25
Totals
42,340.00
42,340.00
Required:
1. (Optional) Using the data from Chapter 3, prepare anend-of-period spreadsheet on a sheet of paper or using spreadsheetsoftware.
2. Prepare an income statement, a retained earnings statement, anda balance sheet.*
3.
A. Journalize the closing entries. Refer to the Chart ofAccounts for exact wording of account titles.
B. Post the closing entries. The income summary account is #34 inthe ledger of PS Music. Indicate closed accounts by inserting a 0(zero) in either of the Balance columns opposite the closing entry.No entry is required in the Item column.
4. Prepare a post-closing trial balance.
* For guidance in completing the financial statements, be sureto read the instructions above each statement carefully.
CHART OF ACCOUNTSPS MusicGeneral Ledger
ASSETS
11 Cash
12 Accounts Receivable
14 Supplies
15 Prepaid Insurance
17 Office Equipment
18 Accumulated Depreciation-Office Equipment
LIABILITIES
21 Accounts Payable
22 Wages Payable
23 Unearned Revenue
EQUITY
31 Common Stock
32 Retained Earnings
33 Dividends
34 Income Summary
REVENUE
41 Fees Earned
EXPENSES
50 Wages Expense
51 Office Rent Expense
52 Equipment Rent Expense
53 Utilities Expense
54 Music Expense
55 Advertising Expense
56 Supplies Expense
57 Insurance Expense
58 Depreciation Expense
59 Miscellaneous Expense
LabelsCash flows from financing activitiesCash flows frominvesting activitiesCash flows from operating activitiesCurrentassetsCurrent liabilitiesExpensesFor the Two Months Ended July 31,2016July 31, 2016Property, plant, and equipmentAmountDescriptionsAdd dividendsDecrease in retained earningsIncrease inretained earningsNet decrease in cash during June and JulyNetincrease in cash during June and JulyLess dividendsNet incomeNetlossRetained earnings, June 1, 2016Retained earnings, July 31,2016Total assetsTotal current assetsTotal expensesTotalliabilitiesTotal liabilities and stockholdersâ equityTotalproperty, plant, and equipmentTotal stockholdersâ equity
Related questions
PLEASE answer number 2 (worksheet) I am really struggling with it.
Below is the unadjusted trial balance for Walton Anvils as of December 31, 2016, and the data for the adjustments. There is also an Excel Template for this problem that you may download and use (or you may use your own).
| Walton Anvils | ||
| Unadjusted Trial Balance | ||
| December 31, 2016 | ||
| Balance | ||
| Account Title | Debt | Credit |
| Cash | $ 16,900.00 | |
| Accounts Receivable | 17,500 | |
| Prepaid Rent | 2,500 | |
| Office Supplies | 1,900 | |
| Equipment | 23,000 | |
| Accumulated Depreciation - Equipment | $ 7,000.00 | |
| Accounts Payable | 6,200.00 | |
| Salaries Payable | ||
| Unearned Revenue | 5,600.00 | |
| Common Stock | 28,000.00 | |
| Retained Earnings | 1,600.00 | |
| Dividends | 4,500 | |
| Service Revenue | 20,800.00 | |
| Salaries Expense | 2,900 | |
| Rent Expense | ||
| Depreciation Expense - Equipment | ||
| Supplies Expense | ||
| Total | $ 69,200.00 | $ 69,200.00 |
Adjustment Data
| a. Unearned revenue still unearned at December 31, 2016 | $1,800 |
| b. Prepaid rent still in force at December 31, 2016 | $2,300 |
| c. Office supplies used | $1,400 |
| d. Depreciation | $380 |
| e. Accrued Salaries Expense at December 31, 2016 | $210 |
Requirements
1.Open T-accounts using the balances in the unadjusted trial balance.
2.Complete the worksheet for the year ended December 31, 2016.
3.Prepare the adjusting entries and post to the T-accounts.
4.Prepare the adjusted trial balance.
5.Prepare the income statement, the statement of retained earnings, and the classified balance sheet in report form.
6.Prepare the closing entries and post to the T-accounts.
7.Prepare a post-closing trial balance.
8.Calculate the current ratio for the company.
