I need assistance because i got these wrong. On January 1, Pulse Recording Studi

Question

I need assistance because i got these wrong.

On January 1, Pulse Recording Studio (PRS) had the following account balances Accounts Payable Accounts Receivable Accumulated Depreciation Equipment Cash Cash Equivalents Common Stock Equipment Notes Payable (long-term) Prepaid Rent Retained Earnings Supplies Unearned Revenue S 8,500 7,000 6,000 3,800 1,500 10,000 30,000 12,000 3,000 5,300 4,000 The following transactions occurred during January 1. Received $2,500 cash on 1/1 from customers on account for recording services completed in December 2. Wrote checks on 1/2 totaling $4,000 for amounts owed on account at the end of December 3. Purchased and received supplies on account on 1/3, at a total cost of $200 4. Completed $4,000 of recording sessions on 1/4 that customers had paid for in advance in December 5. Received $5,000 cash on 1/5 from customers for recording sessions started and completed in January 6. Wrote a check on 1/6 for $4,000 for an amount owed on account. 7. Converted $1,000 of cash equivalents into cash on 1/7 8. On 1/15, completed EFTs for $1,500 for employees' salaries and wages for the first half of January. 9. Received $3,000 cash on 1/31 from customers for recording sessions to start in February.

Explanation / Answer

the following are the required journal entries:

date general journal debit credit Jan 15 Salaries and wages expense $1,500 ...............To Cash a/c $1,500 (salaries and wages expense is to be debited not salaries and wages payable, since it relates to January itself) Jan 31 Cash a/c $5 .............To Interest revenue a/c $5 (interest reveue is to be credited) jan 31 Rent expense a/c $1,000 ............TO Prepaid rent $1,000 (only one month rent is to be expensed, since the prepaid rent is valid till march, january rent will be = $3,000* 1 month /3 months =>$1,000)

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