Signed a contract to provide a marching band for the countywide 4th of July cele

Question

Signed a contract to provide a marching band for the countywide 4th of July celebration. The marching band is to provide three consecutive hours of service at a rate of $1,700 per hour. There will be 100 members in the marching band. Each marching band member will be paid by the music school at a rate of $10 per hour. Purchased music supplies on account, $5,000. Hired a professional instrument maintenance and tuner firm to adjust the musical instruments. The instrument maintenance firm provided the service and billed the music school $2,500.

Explanation / Answer

We journalise as below

Date Particulars Debit Credit 1-Jul No Journal entry is reuiredon signing a contract 2-Jul Supplies 5000        Accounts Payable 5000 Supplies purchased 2-Jul Instrument maintenance expense 2500             Cash 2500 instrument maintenance expense paid by school a assumed in cash 3-Jul Van operating expense 115           Cash 115 Van Maintenance charges paid 5-Jul Cash 1550       Revenue earned 1550 Revenue earned on account of individual lessons 5-Jul Cash 5100       Revenue earned - county performance 5100 Revenue earned on account of marching band performance 5-Jul County performance expense 3000           Accounts payable 3000 Expense incurred on hired band 5-Jul Salary expense 2500       Cash 2500 Salary expense incurred 5-Jul Outstanding music wage payable 1700          Cash 1700 Payment of outstanding wages 8-Jul Supplies 500       Cash 500 Supplies purchased on cash 9-Jul Lawrence marcel drawing 650          Cash 650 Issue of check for personal car loan 9-Jul Equipment 1500     Accounts payable 1500 purchased office equipment on account 10-Jul Accounts Payable 3200           Cash 3200 Accounts payable paid 11-Jul No Journal entry is reuired on signing a contract 12-Jul Cash 1300    Revenue earned 1300 Revenue earned on account of music lessons 12-Jul Accounts Payable 3000     Cash 3000 Paid outstanding amount of band 12-Jul Salary expense 2500       Cash 2500 Salary expense incurred

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