Question

Book ISBN: 1111535221

Financial and Manengarial Accounting using excell for success

Question:

Continuing Problem Pg. 99-100.

The transaction completed by PS Music during June 2012 were described at the end of Chapter 1. The follwoing transaction where completed during July, the second monh of the business opperations:

July 1. Pat Sharp made an additional investment in PS Music in exchange for capital stock by depositing $4,000 in PS Musics checking account.

       1. Instead of continuing to share office space with the local real estate agency, Pat decided to rent office space near a loca music store. Paid rent for July, $1,800.

       1. Paid a Premium of $2,700 for a comprehensice insurance poly covering liabiity, theft, and fire. The policy covers a one year period.

       2. REceived $1,250 on account.

       3. On behave of PS Music, Pat signed a contract with a local radio station WHBD, to provide guest spots for the next 3 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 WHBD at $40 per hr. An accordance with the contract, Pat recieved $7,200 from WHBD as an advanced payment for the next two moths.

      3. Paid $250 on account.

      4. Paid an attourney $800 for reviewing the July 3rd contract with WHBD. (Record as Miscellaneous Expense)

      5. Purchased office equipment on account from One-Stop Office Mart, $6,000.

      8. Paid for a news paper advertisment, $200.

      11. Recieved $900 for serving as a disk jockey for a party.

      13. Paid $600 to a local audio electronic store for rental of digital recording equipment.

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

"Enter the following transactions on Page 2 of the two-collum journal"

      16. Received $2,100 for serving as a disck jockey for a wedding reception.

      18. Purchased supplies on account, $1,080

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

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

     23. Served as a disk jockey for a party, $2,500. Received $750, with the remainder due Aug. 4, 2012.

     27. Paid electric bill, $760

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

    29. Paid miscellaneous expenses, $370.

    30. Served as a disk jockey for a charity ball for $1,800. Receieved $400 with the remainder due on Aug. 9,2012.

   31. Received $2,800 for seving as a disc jockey for a party.

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

31. Paid dividens of $1,500.

"PS Music's charts of accounts and the balance of accounts as of July 1, 2012 (all normal balances), are as follows:"

11 Cash    $5,310

12 Accounts REceivanle 1,250

14 Supplies   170

15 Prepaid Insurance -

17 Office Equipment   -

21 Accounts Payable 250

23 Unearned Revenue -

31 Capital Stock 5,000

33 Dividends 500

41 Fees Earned 6,650

50 Wages Expenses 400

51 Office Rent Exoenses 750

52 Equipemtn Rent Expenses 700

53 Utilities Expenses 300

54 Music Expenses 1,590

55 Advertising Expenses 450

56 Supplies Expenses   180

59 Miscellaneous Expense 300

"Instructions"

2. Analyze and journalize each transaction in a two-collum journal beggining on Page 1, ommiting journal entry explanations.

I NEED:

Complete ‘Instruction 2’ only as modified below:

Using the information on page 55 (Journalizing), you are to analyze and journalize each transaction in a two-column journal beginning your journal on page 1, including journal entry explanations.

    

Answer 1

Journal Entry
Date	Particulars	Dr. Amt.	Cr. Amt.
1-Jul	Cash	4,000.00
	Common Stock		4,000.00
	(Record the issue of Common Stock)
1-Jul	Prepaid Insurance	2,700.00
	Cash		2,700.00
	(Record the insurance policy paid for one year)
2-Jul	Cash	1,250.00
	Accounts Receivable		1,250.00
	(Record the cash received from customers)
3-Jul	Cash	7,200.00
	Unearned Fees		7,200.00
	(record the advance received)
3-Jul	Accounts Payable	250.00
	Cash		250.00
	(Record the cash paid on account)
4-Jul	Miscellaneous Expense	800.00
	Cash		800.00
	(Record the cash paid to lawyer for review of contract)
5-Jul	Equipment	6,000.00
	Accounts Payable		6,000.00
	(Record the equipment purchased on credit)
8-Jul	Advertisment Expenses	200.00
	Cash		200.00
	(Record the cash paid for advertisements)
11-Jul	Cash	900.00
	Fees Earned		900.00
	(Record the cash received as a disc jockey)
13-Jul	Rent Expenses - Digital Recording Equip.	600.00
	Cash		600.00
	(Record the rent paid for digital recording equipment)
14-Jul	Wages Expenses	1,200.00
	Cash		1,200.00
	(Record the wages paid to receiptionist)
16-Jul	Cash	2,100.00
	Fees Earned		2,100.00
	(Record the cash received as a disc jockey)
18-Jul	Supplies	1,080.00
	Accounts Payable		1,080.00
	(record the supplies purchased on account)
21-Jul	Music Expenses	620.00
	Cash		620.00
	(Record the uploading charges paid)
22-Jul	Advertisment Expenses	800.00
	Cash		800.00
	(Record the cash paid for advertisements)
23-Jul	Cash	750.00
	Accounts Receivable	1,750.00
	Fees Earned		2,500.00
	(Record the fees earned as a disc jockey)
27-Jul	Utility Expenses	760.00
	Cash		760.00
	(Record the cash paid for electricity)
28-Jul	Wages Expenses	1,200.00
	Cash		1,200.00
	(Record the wages paid to receiptionist & part time assistant)
29-Jul	Miscellaneous Expense	370.00
	Cash		370.00
	(Record the cash paid)
30-Jul	Cash	400.00
	Accounts Receivable	1,400.00
	Fees Earned		1,800.00
	(Record the fees earned as a disc jockey)
31-Jul	Cash	2,800.00
	Fees Earned		#REF!
	(Record the fees earned as a disc jockey)
31-Jul	Music Expenses	1,400.00
	Cash		1,400.00
	(Record the royalties paid)
31-Jul	Dividends	1,500.00
	Cash		1,500.00
	(Record the dividends paid)