Instructions Assets Liabities Stockholder taquity Office lqupment Accounts Common Adverting Wages Us Spples Mc Exp Acc Fees Music Rent Rent Cah Rec Supplies- Payable Stock -Dividends Earned- Ep- Ep- bp - bp- Ep- Ep - Exp
Peyton Smith enjoys listening to all types of music and owns countless CDs. Over the years, Peyton has gained a local reputation for knowledge of music from classical to rap and the ability to put together sets of recordings that appeal to all ages.
During the last several months, Peyton served as a guest disc jockey on a local radio station. In addition, Peyton has entertained at several friends’ parties ax the host deejay.
On June 1, 20Y5, Peyton established a corporation known as PS Music. Using an extensive collection of music MP3 files, Peyton will verse as a disc jockey on a fee basis for weddings, college parties, and other events. During June, Peyton entered into the following transactions:
June 1. Deposited $4,000 in a checking account in the name of PS Music in exchange for common stock.
2. Received $3,500 from a local radio station for serving as the guest disc jockey for June.
2. Agreed to share office space with a focal real estate agency. Pinnacle Realty PS Music will pay one fourth of the rent. In addition, PS Music agreed to pay a port on of the wages of the receptionist and to pay one fourth of the utilities Paid $800 for the rent of the office.
4. Purchased supplies from City Office Supply Co. for $3S0 Agreed to pay $100 within 10 days and the remainder by Ally S. 20YS.
4. Purchased supplies from City Office Supply Co. for $3S0 Agreed to pay $100 within 10 days and the remainder by Ally S. 20YS.
6. Paid $500 to a local radio station to advertise the services of PS Music twice daily for two weeks.
8. Paid $67S to a local electronics store for renting digital recording equipment
12. Paid $350 (music expense) to Cool Music for the use of its current music demos to make various music sets
13. Paid City Office Supply Co. $100 on account
16. Received $300 from a dentist for providing two music sets for the dentist to play for her patients.
22. Served ax disc jockey for a wedding party. The father of the bride agreed to pay $ 1.000 in July
25. Received $500 for serving ax the disc jockey for a cancer charity ball hosted by the focal hospital
29. Paid $240 (music expense) to Galaxy Music for the use of lx library of music demos.
30. Received $900 for serving ax PS disc jockey for a local club’s monthly dance.
30. Paid Pinnacle Realty $400 for PS Music s share of the receptions’ wages for June
30. Pad Pinnacle Realty $300 for PS Music share of the utilities for June
30. Determined that the cost of supplies on hand n $170 Therefore, the cost of supplies used during the month wax$180
30. Paid for miscellaneous expenses, $415.
30. Pad $1,000 royalties (music expense) to National Music Clearing for use of various artists’ music during the month.
30. Paid dividends $500.
Instructions
Refer to the image
1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:
2. Prepare an income statement for PS Music for the month ended June 30. 20Y5.
3. Prepare a statement of
4. Prepare a
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