On January 1, Pulse Recording Studio (PRS) had the following account balances. Accounts Payable $ 8,400 Accounts Receivable 6,800 Accumulated Depreciation-Equipment 6,600 Cash 3,640 Cash Equivalents Common Stock 1,620 10,200 Deferred Revenue 3,900 Equipment 30,900 Notes Payable (long-term) 12,400 Prepaid Rent 1,890 Retained Earnings 3,850 500 Supplies The following transactions occurred during January a Received $2.370 cash on 1/1 from customers on account for recording services completed in December. b. Wrote checks on 1/2 totaling $4,370 for amounts owed on account at the end of December. c. Purchased and received supplies on account on 1/3, at a total cost of $200. d. Completed $3,900 of recording sessions on 1/4 that customers had paid for in advance in December. e. Received $4.700 cash on 1/5 from customers for recording sessions started and completed in January. Wrote a check on 1/6 for $4,040 for an amount owed on account g. Converted $1.030 of cash equivalents into cash on 1/7 h On 115, completed EFTS for $1,390 for employees salaries and wages for the first half of January. Received $2,970 cash on 1/31 from customers for recording sessions to start in February. Required: 1. Prepare journal entries for the January transactions. Review the General Ledger and the unadjusted Trial Balance Tabs
On January 1, Pulse Recording Studio (PRS) had the following account balances. Accounts Payable $ 8,400 Accounts Receivable 6,800 Accumulated Depreciation-Equipment 6,600 Cash 3,640 Cash Equivalents Common Stock 1,620 10,200 Deferred Revenue 3,900 Equipment 30,900 Notes Payable (long-term) 12,400 Prepaid Rent 1,890 Retained Earnings 3,850 500 Supplies The following transactions occurred during January a Received $2.370 cash on 1/1 from customers on account for recording services completed in December. b. Wrote checks on 1/2 totaling $4,370 for amounts owed on account at the end of December. c. Purchased and received supplies on account on 1/3, at a total cost of $200. d. Completed $3,900 of recording sessions on 1/4 that customers had paid for in advance in December. e. Received $4.700 cash on 1/5 from customers for recording sessions started and completed in January. Wrote a check on 1/6 for $4,040 for an amount owed on account g. Converted $1.030 of cash equivalents into cash on 1/7 h On 115, completed EFTS for $1,390 for employees salaries and wages for the first half of January. Received $2,970 cash on 1/31 from customers for recording sessions to start in February. Required: 1. Prepare journal entries for the January transactions. Review the General Ledger and the unadjusted Trial Balance Tabs
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, Pulse Recording Studio (PRS) had the following account balances.
Accounts Payable
$ 8,400
Accounts Receivable
6,800
Accumulated Depreciation-Equipment
6,600
Cash
3,640
Cash Equivalents
1,620
Common Stock
10,200
Deferred Revenue
3,900
Equipment
30,900
Notes Payable (long-term)
12,400
Prepaid Rent
Retained Earnings
1,890
3,850
500
Supplies
The following transactions occurred during January.
a Received $2.370 cash on 1/1 from customers on account for recording services completed in December.
b. Wrote checks on 1/2 totaling $4,370 for amounts owed on account at the end of December.
c. Purchased and received supplies on account on 1/3, at a total cost of $200.
d. Completed $3,900 of recording sessions on 1/4 that customers had paid for in advance in December.
e. Received $4.700 cash on 1/5 from customers for recording sessions started and completed in January.
Wrote a check on 1/6 for $4.040 for an amount owed on account.
g. Converted $1.030 of cash equivalents into cash on 1/7
h. On 1/15, completed EFTS for $1.390 for employees salaries and wages for the first half of January.
Received $2,970 cash on 1/31 from customers for recording sessions to start in February.
Required:
1. Prepare journal entries for the January transactions. Review the General Ledger and the unadjusted 'Trial Balance Tabs to
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Transcribed Image Text:7. RELEIVCU VECUSUTICIS V ICLOny sessions Curuary.
Required:
1. Prepare journal entries for the January transactions. Review the 'General Ledger' and the unadjusted 'Trial Balance' Tabs to se
effect of the transactions on the account balances.
2. Prepare journal entries for items (i)-(n) from the bank reconciliation.
J. The bank deducted $470 for an NSF check from a customer deposited on January 5.
k. The check written January 6 has not cleared the bank, but the January 2 payment has cleared.
1. The cash received and deposited on January 31 was not processed by the bank until February 1.
m. The bank added $4 cash to the account for interest earned in January.
n. The bank deducted $4 for service charges.
3. Prepare adjusting journal entries on 1/31 in 'General Journal Tab. (these are shown as items 15 to 21).
o. Depreciation for the month is $280.
p. Salaries and wages totaling $1,300 have not yet been recorded for January 16 to 31.
q. Prepaid Rent will be fully used up by March 31.
r. Supplies on hand at January 31 were $200.
s. Received $200 Invoice for January electricity charged on account to be paid in February but is not yet recorded.
t. Interest on the promissory note of $26 for January has not yet been recorded or paid.
u. Income tax of $2,000 on January income has not yet been recorded or paid.
4. Review the adjusted 'Trial Balance' as of January 31.
5. Prepare an income statement for the period ended January 31 in the 'Income Statement Tab.
6. Prepare a bank reconciliation in the 'Bank Reconciliation' Tab.
7. Prepare a classified balance sheet as of January 31 in the Balance Sheet' Tab.
8. Using the information from the requirements above. complete the 'Analysis' tab.
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