,4,5 P3-12A. Transaction Analysis, Trial Balance, and Financial Statements Angel
ID: 2338810 • Letter: #
Question
,4,5 P3-12A. Transaction Analysis, Trial Balance, and Financial Statements Angela Mehl operates the Dance Studio. On June 1, the business's general ledger contained the following information: Mes S 480 3,580 1870 2,000 $13,930 $13,930 The following transactions occurred during the month of June: June 1 Paid June rent for practice studio, $975. 2 Paid June piano rental, $240 (Rent Expense). 3 Collected $5,320 from students on account. 4 Borrowed $1,500 and signed a promissory note payable due in six months. 5 Billed students for June instructional fees, $7,500. 6 Paid interest for June on notes payable, $30. 7 Paid $350 for advertising ballet performances. 8 Paid costume rental, $550 (Rent Expense). 9 Collected $2,100 admission fees from ballet performances given during the month. 10 11 12 13 Paid $480 owed on account. Received invoice for June utilities, to be paid in July, $465 Paid stockholders $900 cash as a dividend. Purchased piano for $5,000 cash, to be used in business starting in July. Required a. Set up accounts for the general ledger with June 1 balances and enter the beginning balances Also provide the following accounts: Piano; Dividends; Instructional Fees Earned; Performance Revenue: Rent Expense; Ulilities Expense; Advertising Expense; and Interest Expense. Recol the listed transactions in the accounts. b. Prepare a trial balance as of June 30. c. Prepare an income statement for the month of June. d. Prepare a statement of stockholders' equity for the month of June. e. Prepare a balance sheet as of June 30. f. Prepare closing entries. g. Prepare a post-closing trial balanceExplanation / Answer
PIANO A/C AS ON JUNE 30 th PARTICULARS DEBIT PARTICULARS CREDIT $ $ TO CASH 5,000.00 BY BALANCE C/D 5,000.00 5,000.00 5,000.00 TO BALANCE B/D 5,000.00 DIVIDENDS A/C AS ON JUNE 30 th PARTICULARS DEBIT PARTICULARS CREDIT $ $ TO CASH 900.00 BY BALANCE C/D 900.00 900.00 900.00 TO BALANCE B/D 900.00 INSTRUCTIONAL FEES EARNED A/C AS ON JUNE 30 th PARTICULARS DEBIT PARTICULARS CREDIT $ $ BY STUDENTS' A/C 7,500.00 TO BALANCE C/D 7,500.00 7,500.00 7,500.00 TO BALANCE B/D BY BALANCE B/D 7,500.00 PERFORMANCE REVENUE A/C AS ON JUNE 30 th PARTICULARS DEBIT PARTICULARS CREDIT $ $ BY CASH A/C 2,100.00 TO BALANCE C/D 2,100.00 2,100.00 2,100.00 TO BALANCE B/D BY BALANCE B/D 2,100.00 RENT EXPENSE A/C AS ON JUNE 30 th PARTICULARS DEBIT PARTICULARS CREDIT $ $ TO CASH - PRACTICE STUDIO 975.00 TO CASH - COSTUME RENTALS 550.00 TO CASH - PIANO RENTAL 240.00 BY BALANCE C/D 1,765.00 1,765.00 1,765.00 TO BALANCE B/D 1,765.00 UTILITIES EXPENSE A/C AS ON JUNE 30 th PARTICULARS DEBIT PARTICULARS CREDIT $ $ TO SUNDRY CREDITORS A/C 465.00 BY BALANCE C/D 465.00 465.00 465.00 TO BALANCE B/D 465.00 ADVERTISEMENT EXPENSE A/C AS ON JUNE 30 th PARTICULARS DEBIT PARTICULARS CREDIT $ $ TO CASH 250.00 BY BALANCE C/D 250.00 250.00 250.00 TO BALANCE B/D 250.00 INTEREST EXPENSE A/C AS ON JUNE 30 th PARTICULARS DEBIT PARTICULARS CREDIT $ $ TO CASH 30.00 BY BALANCE C/D 30.00 30.00 30.00 TO BALANCE B/D 30.00 ACCOUNTS PAYABLE A/C AS ON JUNE 30 th PARTICULARS DEBIT PARTICULARS CREDIT $ $ TO CASH 480.00 BY BALANCE C/D 480.00 BY UTILITIES EXPENSE A/C 465.00 TO BALANCE C/D 465.00 945.00 945.00 BY BALANCE B/D 465.00 ACCOUNTS RECEIVABLE A/C AS ON JUNE 30 th PARTICULARS DEBIT PARTICULARS CREDIT $ $ TO BALANCE C/D 8,000.00 BY CASH 5,320.00 TO STUDENTS' A/C 7,500.00 BY BALANCE C/D 10,180.00 15,500.00 15,500.00 TO BALANCE B/D 10,180.00 - NOTES PAYABLE A/C AS ON JUNE 30 th PARTICULARS DEBIT PARTICULARS CREDIT $ $ BY BALANCE C/D 3,580.00 BY CASH - BORROWINGS 1,500.00 TO BALANCE C/D 5,080.00 5,080.00 5,080.00 BY BALANCE B/D 5,080.00 STOCKHOLDERS' EQUITY A/C AS ON JUNE 30 th PARTICULARS DEBIT PARTICULARS CREDIT $ $ BY BALANCE C/D 7,870.00 TO BALANCE C/D 7,870.00 7,870.00 7,870.00 BY BALANCE B/D 7,870.00 CASH A/C AS ON JUNE 30 th PARTICULARS DEBIT PARTICULARS CREDIT $ $ TO BALANCE C/D 5,930.00 BY PIANO A/C 5,000.00 TO PERFORMANCE REVENUE A/C 2,100.00 BY DIVIDEND A/C 900.00 BY ACCOUNTS RECEIVABLE A/C 5,320.00 BY RENT EXPENSE A/C 1,765.00 TO NOTES PAYABLE A/C 1,500.00 BY ADVERTISEMENT EXP A/C 250.00 BY INTEREST EXPENSE A/C 30.00 BY ACCOUNTS PAYABLE A/C 480.00 BY BALANCE C/D 6,425.00 14,850.00 14,850.00 TO BALANCE B/D 6,425.00 POST CLOSING TRIAL BALANCE AS ON 30 th JUNE PARTICULARS DEBIT CREDIT COMMON STOCK 7,870.00 RETIAINED EARNINGS 2,000.00 PIANO ( ASSET ) 5,000.00 DIVEDENDS 900.00 INSTRUCTIONAL FEES EARNED 7,500.00 PERFORMANCE REVENUE 2,100.00 RENT EXPENSES 1,765.00 UTILITIES EXPENSES 465.00 ADVERTISEMENT 250.00 INTEREST 30.00 ACCOUNTS PAYABLE 465.00 ACCOUNTS RECEIVABLE 10,180.00 NOTES PAYABLE 5,080.00 CASH 6,425.00 25,015.00 25,015.00 PROFIT & LOSS ACCOUNT AS ON 30 th JUNE PARTICULARS AMOUNT PARTICULARS AMOUNT $ $ DIVEDENDS 900.00 BY BALANCE B/D (RETAINED EARNINGS) 2,000.00 RENT EXPENSES 1,765.00 INSTRUCTIONAL FEES EARNED 7,500.00 UTILITIES EXPENSES 465.00 PERFORMANCE REVENUE 2,100.00 ADVERTISEMENT 250.00 INTEREST 30.00 NET INCOME 8,190.00 11,600.00 11,600.00 CLOSING ENTRIES DEBIT CREDIT PROFIT & LOSS A/C 900.00 TO DIVIDENDS A/C 900.00 (BEING DIVIDENDS PAID TO THE STOCKHOLDERS TRANSFERRED TO P & L A/C) PROFIT & LOSS A/C 1,765.00 TO RENT EXPENSES 1,765.00 (BEING RENTAL EXPENSES TRANSFERRED TO P & L A/C) PROFIT & LOSS A/C 465.00 TO UTILITY EXPENSES A/C 465.00 (BEING UTILITY EXPENSES TRANSFERRED TO P & L A/C) PROFIT & LOSS A/C 250.00 ADVERTISEMENT 250.00 (BEING ADVERTISEMENT EXPENSES TRANSFERRED TO P & L A/C) PROFIT & LOSS A/C 30.00 INTEREST A/C 30.00 (BEING INTEREST EXPENSES TRANSFERRED TO P & L A/C)
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