Question

Transaction Analysis, Trial Balance, and Financial Statements Angela Mehl operates the Mehl Dance Studio. On June 1, the business's general ledger contained the following information: Cash $6,523 Accounts Receivable 8,162 Total $14,685 Accounts Payable $528 Notes Payable 3,300 Common Stock 8,657 Retained Earnings 2,200 Total $14,685 The following transactions occurred during the month of June: 1 Paid June rent for practice studio. $1,073 2 Paid June piano rental (Rent Expense). 99 3 Collected from students on account. 5,852 4 Borrowed and signed a promissory note payable due in 6 months for 1,650 5 Billed students for June instructional fees. 6,160 6 Paid interest for June on notes payable. 33 7 Paid for advertising ballet performances. 385 8 Paid costume rental (Rent Expense). 440 9 Collected admission fees from ballet performances given during the month. 2,310 10 Paid amount owed on account. 528 11 Received invoice for June utilities, to be paid in July. 308 12 Paid stockholders a cash dividend. 825 13 Used cash to purchase piano, to be used in business starting in July. 6,050 Required a. Record these transactions in the general journal and post them to the T-accounts. b. Prepare a trial balance as of June 30. a. General Journal Date Description Post ref. Debit Credit June Answer (1) $Answer $Answer Answer Answer Answer To record payment of studio rent. Answer (2) Answer Answer Answer Answer Answer To record payment of piano rent. Answer (3) Answer Answer Answer Answer Answer To record cash collection from students. Answer (4) Answer Answer Answer Answer Answer To record note payable. Answer (5) Answer Answer Answer Answer Answer To record June billings. Answer (6) Answer Answer Answer Answer Answer To record payment of interest. Answer (7) Answer Answer Answer Answer Answer To record payment for advertising. Answer (8) Answer Answer Answer Answer Answer To record payment for costume rental. Answer (9) Answer Answer Answer Answer Answer To record receipts for admission fees. Answer (10) Answer Answer Answer Answer Answer To record payment owed on account. Answer (11) Answer Answer Answer Answer Answer To record June utilities invoice. Answer (12) Answer Answer Answer Answer Answer To record cash dividend. Answer (13) Answer Answer Answer Answer Answer To record purchase of a piano. Cash Beg Answer Answer (1) Answer Answer (2) Answer Answer (3) Answer Answer (4) Answer Answer (6) Answer Answer (7) Answer Answer (8) Answer Answer (9) Answer Answer (10) Answer Answer (12) Answer Answer (13) Answer Answer Bal Answer Answer Accounts Receivable Beg Answer Answer (3) Answer Answer (5) Answer Answer Bal Answer Answer Piano (13) Answer Answer Bal Answer Answer Common Stock Beg Answer Answer Bal Answer Answer Accounts Payable Beg Answer Answer (10) Answer Answer (11) Answer Answer Bal Answer Answer Notes Payable Beg Answer Answer (4) Answer Answer Bal Answer Answer Retained Earnings Beg Answer Answer Bal Answer Answer Dividends (12) Answer Answer Bal Answer Answer Instructional Fees Earned (5) Answer Answer Bal Answer Answer Performance Revenue (9) Answer Answer Bal Answer Answer Rent Expense (1) Answer Answer (2) Answer Answer (8) Answer Answer Bal Answer Answer Utilities Expense (11) Answer Answer Bal Answer Answer Advertising Expense (7) Answer Answer Bal Answer Answer Interest Expense (6) Answer Answer Bal Answer Answer b. MEHL DANCE STUDIO Trial Balance June 30 Debit Credit Cash Answer Answer Accounts Receivable Answer Answer Piano Answer Answer Accounts Payable Answer Answer Notes Payable Answer Answer Common Stock Answer Answer Retained Earnings Answer Answer Dividends Answer Answer Instructional Fees Earned Answer Answer Performance Revenue Answer Answer Rent Expense Answer Answer Utilities Expense Answer Answer Advertising Expense Answer Answer Interest Expense Answer Answer Totals Answer Answer

Answer 1

a.

General Journal
Date	Description	Post ref.	Debit	Credit
June
1	Rent expense		1073
	Cash			1073
	(To record payment of studio rent)
2	Rent expense		99
	Cash			99
	(To record payment of piano rent)
3	Cash		5852
	Accounts receivable			5852
	(To record cash collection from students)
4	Cash		1650
	Note payable			1650
	(To record note payable)
5	Accounts receivable		6160
	Instructional fees earned			6160
	(To record June billings)
6	Interest expense		33
	Cash			33
	(To record payment of interest)
7	Advertising expense		385
	Cash			385
	(To record payment for advertising)
8	Rent expense		440
	Cash			440
	(To record payment for costume rental)
9	Cash		2310
	Performance revenue			2310
	(To record receipts for admission fees)
10	Accounts payable		528
	Cash			528
	(To record payment owed on account)
11	Utilities expense		308
	Accounts payable			308
	(To record June utilities invoice)
12	Dividends		825
	Cash			825
	(To record cash dividend)
13	Piano		6050
	Cash			6050
	(To record purchase of a piano)

Cash					Accounts Receivable
Beg. Bal.	6523	1073	1		Beg. Bal.	8162	5852	3
3	5852	99	2		5	6160
4	1650	33	6
9	2310	385	7
		440	8
		528	10
		825	12
		6050	13
End. Bal.	6902				End. Bal.	8470
Piano					Common Stock
13	6050				Beg. Bal.		8657
End. Bal.	6050				End. Bal.		8657
Accounts Payable					Notes Payable
Beg. Bal.		528			Beg. Bal.		3300
10	528	308	11				1650	4
End. Bal.		308			End. Bal.		4950
Retained Earnings					Dividends
Beg. Bal.		2200			12	825
End. Bal.		2200			End. Bal.	825
Instructional Fees Earned					Performance Revenue
		6160	5				2310	9
End. Bal.		6160			End. Bal.		2310
Rent Expense					Utilities Expense
1	1073				11	308
2	99
8	440
End. Bal.	1612				End. Bal.	308
Advertising Expense					Interest Expense
7	385				6	33
End. Bal.	385				End. Bal.	33

b.

MEHL DANCE STUDIO
Trial Balance
June 30
	Debit	Credit
Cash	6902
Accounts receivable	8470
Piano	6050
Accounts payable		308
Notes payable		4950
Common stock		8657
Retained earnings		2200
Dividends	825
Instructional fees earned		6160
Performance revenue		2310
Rent expense	1612
Utilities expense	308
Advertising expense	385
Interest expense	33
Totals $	24585	24585