count was determined. h. A debit of $6,000 for a withdrawal by the owner was pos

Question

count was determined. h. A debit of $6,000 for a withdrawal by the owner was posted as a debit to Thad Engelberg, Capital i. The balance of $28,350 in Advertising Expense was entered as $23,850 in the trial balance. j. Miscellaneous Expense, with a balance of $4,600, was omitted from the trial balance. Instructions 1. Prepare a corrected unadjusted trial balance as of January 31, 2019. 2Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain. nuing Problem ebit 50 The transactions completed by PS Music during June 2019 were described at the end of Ch apter 1. The following transactions were completed during July, the second month of the business's operations: July 1. Peyton Smith made an additional investment in PS Music by depositing $5,000 in PS Music's checking account. 1. Instead of continuing to share office space with a local real estate agency 1. Paid a premium of $2,700 for a comprehensive insurance policy covering liabil- 2. Received $1,000 cash from customers on account. Peyton decided to rent office space near a local music store. Paid rent for July $1,750. ity, theft, and fire. The policy covers a one-year period. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600. Any additional hours beyond 80 will be billed to KXMD at $40 per hour. In accordance with the contract, Peyton received $7,200 from KXMD as an advance payment for the first two months. 3. Paid $250 to creditors on account. 4. Paid an attorney $900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from Office Mart, $7,500 8. Paid for a newspaper advertisement, $200. 11. Received $1,000 for serving as a disc jockey for a party 13. Paid $700 to a local audio electronics store for rental of digital recording equip- ment. 14. Paid wages of $1,200 to receptionist and part-time assistant. Enter the follouing transactions on Page 2 of the two-column journal 16. Received $2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, $850. Continued)

Explanation / Answer

1. Four column account ledger Cash Account No. 11 Accounts receivable Account No. 12 Date Debit Credit Balance Date Debit Credit Balance 1-Jul-19 $3,920 $3,920 1-Jul-19 $1,000 $1,000 $3,920 $1,000 $3,920 $1,000 $3,920 $1,000 $3,920 $1,000 Supplies Account No. 14 Prepaid Insurance Account No. 15 Date Debit Credit Balance Date Debit Credit Balance 1-Jul-19 $170 $170 1-Jul-19 $0 $0 $170 $0 $170 $0 $170 $0 $170 $0 Office Equipment Account No. 17 Peyton Smith, Drawing Account No. 32 Date Debit Credit Balance Date Debit Credit Balance 1-Jul-19 $0 $0 1-Jul-19 $500 $500 $0 $500 $0 $500 $0 $500 $0 $500 Peyton Smith, Capital Account No. 31 Accounts payable Account No. 21 Date Debit Credit Balance Date Debit Credit Balance 1-Jul-19 $4,000 $4,000 1-Jul-19 $250 $250 $4,000 $250 $4,000 $250 $4,000 $250 $4,000 $250 Unearned Revenue Account No. 23 Fees earned Account No. 41 Date Debit Credit Balance Date Debit Credit Balance 1-Jul-19 $0 $0 1-Jul-19 $6,200 $6,200 $0 $6,200 $0 $6,200 $0 $6,200 $0 $6,200 Wages Expense Account No. 41 Office Rent Expense Account No. 51 Date Debit Credit Balance Date Debit Credit Balance 1-Jul-19 $400 $400 1-Jul-19 $800 $800 $400 $800 $400 $800 $400 $800 $400 $800 Equipment Rent Expense Account No. 52 Utilities Expense Account No. 53 Date Debit Credit Balance Date Debit Credit Balance 1-Jul-19 $675 $675 1-Jul-19 $300 $300 $675 $300 $675 $300 $675 $300 $675 $300 Music Expense Account No. 54 Advertising Expense Account No. 55 Date Debit Credit Balance Date Debit Credit Balance 1-Jul-19 $1,590 $1,590 1-Jul-19 $500 $500 $1,590 $500 $1,590 $500 $1,590 $500 $1,590 $500 Supplies Expense Account No. 56 Miscellaneous Expense Account No. 59 Date Debit Credit Balance Date Debit Credit Balance 1-Jul-19 $180 $180 1-Jul-19 $415 $415 $180 $415 $180 $415 $180 $415 $180 $415 2 Journal Entries 1-Jul Cash $5,000 Peyton Smith, Capital $5,000 1-Jul Rent expense $1,750 Cash $1,750 1-Jul Prepaid Insurance $2,700 Cash $2,700 2-Jul Cash $1,000 Accounts receivable $1,000 3-Jul Cash $7,200 Unearned revenue $7,200 3-Jul Accounts payable $250 Cash $250 4-Jul Misc. expenses $900 Cash $900 5-Jul Office Equipment $7,500 Accounts Payable $7,500 8-Jul Advertising expense $200 Cash $200 11-Jul Cash $1,000 Fees earned $1,000 13-Jul Equipment rent expense $700 Cash $700 14-Jul Wages expense $1,200 Cash $1,200 16-Jul Cash $2,000 Fees earned $2,000 18-Jul Supplies $850 Accounts payable $850 21-Jul Music expense $620 Cash $620 22-Jul Advertising expense $800 Cash $800 23-Jul Cash $750 Accounts Receivable $1,750 Fees earned $2,500 27-Jul Utilities expense $915 Cash $915 28-Jul Wages expense $1,200 Cash $1,200 29-Jul Misc. expenses $540 Cash $540 30-Jul Cash $500 Accounts Receivable $1,000 Fees earned $1,500 31-Jul Cash $3,000 Fees earned $3,000 31-Jul Music expense $1,400 Cash $1,400 31-Jul Peyton Smith, Drawing $1,250 Cash $1,250 3. Posting journal to ledger Cash Account No. 11 Accounts receivable Account No. 12 Date Debit Credit Balance Date Debit Credit Balance 1-Jul-19 $3,920 $3,920 1-Jul-19 $1,000 $1,000 $43,282 $5,000 $8,920 $43,283 $1,000 $0 $43,282 $1,750 $7,170 $43,304 $1,750 $1,750 $43,282 $2,700 $4,470 $43,311 $1,000 $2,750 $43,283 $1,000 $5,470 $2,750 $43,284 $7,200 $12,670 $43,284 $250 $12,420 $43,285 $900 $11,520 $43,289 $200 $11,320 $43,292 $1,000 $12,320 $43,294 $700 $11,620 $43,295 $1,200 $10,420 $43,297 $2,000 $12,420 $43,302 $620 $11,800 $43,303 $800 $11,000 $43,304 $750 $11,750 $43,308 $915 $10,835 $43,309 $1,200 $9,635 $43,310 $540 $9,095 $43,311 $500 $9,595 $43,312 $3,000 $12,595 $43,312 $1,400 $11,195 $43,312 $1,250 $9,945 Supplies Account No. 14 Prepaid Insurance Account No. 15 Date Debit Credit Balance Date Debit Credit Balance $43,647 $170 $170 $43,647 $0 $0 $43,299 $850 $1,020 $43,282 $2,700 $2,700 $1,020 $2,700 $1,020 $2,700 $1,020 $2,700 Office Equipment Account No. 17 Peyton Smith, Drawing Account No. 32 Date Debit Credit Balance Date Debit Credit Balance $43,647 $0 $0 $43,647 $500 $500 $43,286 $7,500 $7,500 $43,312 $1,250 $1,750 $7,500 $1,750 $7,500 $1,750 $7,500 $1,750 Peyton Smith, Capital Account No. 31 Accounts payable Account No. 21 Date Debit Credit Balance Date Debit Credit Balance $43,647 $4,000 $4,000 $43,647 $250 $250 $43,282 $5,000 $9,000 $43,284 $250 $0 $9,000 $43,286 $7,500 $7,500 $9,000 $43,299 $850 $8,350 $9,000 $8,350 Unearned Revenue Account No. 23 Fees earned Account No. 41 Date Debit Credit Balance Date Debit Credit Balance $43,647 $0 $0 $43,647 $6,200 $6,200 $43,284 $7,200 $7,200 $43,292 $1,000 $7,200 $7,200 $43,297 $2,000 $9,200 $7,200 $43,304 $2,500 $11,700 $7,200 $43,311 $1,500 $13,200 $43,312 $3,000 $16,200 Wages Expense Account No. 41 Office Rent Expense Account No. 51 Date Debit Credit Balance Date Debit Credit Balance $43,647 $400 $400 $43,647 $800 $800 $43,295 $1,200 $1,600 $43,282 $1,750 $2,550 $43,309 $1,200 $2,800 $2,550 $2,800 $2,550 $2,800 $2,550 Equipment Rent Expense Account No. 52 Utilities Expense Account No. 53 Date Debit Credit Balance Date Debit Credit Balance $43,647 $675 $675 $43,647 $300 $300 $43,294 $700 $1,375 $43,308 $915 $1,215 $1,375 $1,215 $1,375 $1,215 $1,375 $1,215 Music Expense Account No. 54 Advertising Expense Account No. 55 Date Debit Credit Balance Date Debit Credit Balance $43,647 $1,590 $1,590 $43,647 $500 $500 $43,302 $620 $2,210 $43,289 $200 $700 $43,312 $1,400 $3,610 $43,303 $800 $1,500 $3,610 $1,500 $3,610 $1,500 Supplies Expense Account No. 56 Miscellaneous Expense Account No. 59 Date Debit Credit Balance Date Debit Credit Balance $43,647 $180 $180 $43,647 $415 $415 $180 $43,285 $900 $1,315 $180 $43,310 $540 $1,855 $180 $1,855 $180 $1,855 4 Unadjusted Trial Balance Account Titles Debit Credit Cash $9,945 Accounts receivable $2,750 Supplies $1,020 Prepaid Insurance $2,700 Office Equipment $7,500 Accounts Payable $8,350 Unearned Revenue $7,200 Peyton smith, Capital $9,000 Peyton Smith, Drawing $1,750 Fees Earned $16,200 Wages Expense $2,800 Office Rent Expense $2,550 Equipment Rent Expense $1,375 Utilities Expense $1,215 Music Expense $3,610 Advertising Expense $1,500 Supplies Expense $180 Miscellenous Expense $1,855 $40,750 $40,750

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