The unadjusted trial balance of PS Music as of July 31, 2018, along with the adj
ID: 2336214 • Letter: T
Question
The unadjusted trial balance of PS Music as of July 31, 2018, along with the adjustment data for the two months ended July 31, 2018, are shown in Chapter 3. Based upon the adjustment data, the following adjusted trial balance was prepared:
PS Music
ADJUSTED TRIAL BALANCE
July 31, 2018
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
Dividends
1,750.00
12
Fees Earned
21,200.00
13
Wages Expense
2,940.00
14
Office Rent Expense
2,550.00
15
Equipment Rent Expense
1,375.00
16
Utilities Expense
1,215.00
17
Music Expense
3,610.00
18
Advertising Expense
1,500.00
19
Supplies Expense
925.00
20
Insurance Expense
225.00
21
Depreciation Expense
50.00
22
Miscellaneous Expense
1,855.00
23
Totals
42,340.00
42,340.00
Required:
ACCOUNT TITLE DEBIT CREDIT1
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
Dividends
1,750.00
12
Fees Earned
21,200.00
13
Wages Expense
2,940.00
14
Office Rent Expense
2,550.00
15
Equipment Rent Expense
1,375.00
16
Utilities Expense
1,215.00
17
Music Expense
3,610.00
18
Advertising Expense
1,500.00
19
Supplies Expense
925.00
20
Insurance Expense
225.00
21
Depreciation Expense
50.00
22
Miscellaneous Expense
1,855.00
23
Totals
42,340.00
42,340.00
Explanation / Answer
Adjusted Trail balance particulars Dr Cr Dr Cr cash $ 9,945.00 $ 9,945.00 accounts receivable $ 4,150.00 $ 4,150.00 supplies $ 275.00 $ 275.00 prepaid insurance $ 2,475.00 $ 2,475.00 office equipment $ 7,500.00 $ 7,500.00 TOTAL (A) $ 24,345.00 Accmulated dep-ofc equipment $ 50.00 $ 50.00 accounts payable $ 8,350.00 $ 8,350.00 wages payable $ 140.00 $ 140.00 unearned revenue $ 3,600.00 $ 3,600.00 common stock $ 9,000.00 $ 9,000.00 TOTAL(B) $ 21,140.00 $ 21,140.00 retained earning (A)-(B) $ 3,205.00 Dividends $ 1,750.00 0 INCOME SUMMARY fees earned 21200 exoenses: wages exp $ 2,940.00 0 0 office rent exp $ 2,550.00 0 equipment rent exp $ 1,375.00 0 utilities exp $ 1,215.00 0 music exp $ 3,610.00 0 Advertisment exp $ 1,500.00 0 supplies exp $ 925.00 0 isurance exp $ 225.00 0 Depreciation exp $ 50.00 0 miscellaneous exp $ 1,855.00 0 total $ 42,340.00 $ 42,340.00 $ 24,345.00 $ 24,345.00 INCOME STATEMENT AS ON JULY 31,2018 fees earned (1) $ 21,200.00 exoenses: wages exp $ 2,940.00 office rent exp $ 2,550.00 equipment rent exp $ 1,375.00 utilities exp $ 1,215.00 music exp $ 3,610.00 Advertisment exp $ 1,500.00 supplies exp $ 925.00 isurance exp $ 225.00 Depreciation exp $ 50.00 miscellaneous exp $ 1,855.00 TOTAL OPERATING EXPENSES(2) $ 16,245.00 NET INCOME (1)-(2) $ 4,955.00 STATEMENT OF RETAINED EARNING Net income $ 4,955.00 less: Dividend $ 1,750.00 closing balance of retained earing $ 3,205.00 BALANCE SHEET AS ON JULY 31 ,2018 CURRENT ASSETS Amount cash $ 9,945.00 accounts receivable $ 4,150.00 supplies $ 275.00 prepaid insurance $ 2,475.00 total current assets $ 16,845.00 FIXED ASSETS office equipment $ 7,500.00 less: accumulated depreciation $ -50.00 $ 7,450.00 TOTAL ASSESTS $ 24,295.00 LAIBILITIES & STOCKHOLDERS EQUITY CURRENT LAIBILITIES accounts payable $ 8,350.00 wages payable $ 140.00 unearned revenue $ 3,600.00 TOTAL CURRENT LAIBILITIES $ 12,090.00 Common stock $ 9,000.00 retained earning $ 3,205.00 total stockholder equity $ 12,205.00 total labilities & stockholder equity $ 24,295.00 fees earned $ 21,200.00 income summary $ 21,200.00 (to record revenue closed ) income summary $ 16,245.00 wages exp $ 2,940.00 office rent exp $ 2,550.00 equipment rent exp $ 1,375.00 utilities exp $ 1,215.00 music exp $ 3,610.00 advertisment exp $ 1,500.00 supplies exp $ 925.00 insurance exp $ 225.00 Depreciation exp $ 50.00 miscellaneause exp $ 1,855.00 ( to record close to income summary) income summary $ 4,955.00 retained earning $ 4,955.00 (income summary t/f to retained earning) Retained earning $ 1,750.00 dividends $ 1,750.00 ( dividend t/f to retained earing) POST CLOSING TRAIL BALANCE AS ON DECEMBER 31, 2018 PARTICULARS Dr Cr cash $ 9,945.00 accounts receviable $ 4,150.00 supplies $ 275.00 prepaid insurance $ 2,475.00 office equipment $ 7,500.00 accumulated dep office equioment $ 50.00 account payable $ 8,350.00 wages payable $ 140.00 unearned revenue $ 3,600.00 common stock $ 9,000.00 Retained earning $ 3,205.00 Total $ 24,345.00 $ 24,345.00
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