On June 1, 2010, Lee established a proprietorship known as Music Depot. Using an extensive collection of music CDs, Lee will serve as a disc jockey on a fee basis for weddings, college parties, and other events. During June, Lee entered into the following transactions: June 1 June 2 June 3 Deposited P8,000 in a checking account in the name of Music Depot. Received P2,400 from a local radio station for serving as the guest disc jockey for June. Agreed to share office space with a local real estate agency, Upstairs Realty. Music Depot will pay % of the rent. In addition, Music Depot agreed to pay a portion of the salary of the receptionist and to pay one-fourth of the utilities. Paid P750 for the rent of the office. Purchased supplies (blank CDs, poster board, extension cords, etc.) from City Office Supply Co. for P350. Agreed to pay P100 within 10 days and the remainder by July 5, 2010. Paid P600 to a local radio station to advertise the services of Music Depot twice daily for two weeks. Paid P500 to a local electronics store for renting digital recording equipment. Paid P250 (music expense) to Cool Music for the use of its current music demos to make various music sets. June 4 June 6 June 8 June 12 June 13 Paid City Office Supply Co. P100 on account.
On June 1, 2010, Lee established a proprietorship known as Music Depot. Using an extensive collection of music CDs, Lee will serve as a disc jockey on a fee basis for weddings, college parties, and other events. During June, Lee entered into the following transactions: June 1 June 2 June 3 Deposited P8,000 in a checking account in the name of Music Depot. Received P2,400 from a local radio station for serving as the guest disc jockey for June. Agreed to share office space with a local real estate agency, Upstairs Realty. Music Depot will pay % of the rent. In addition, Music Depot agreed to pay a portion of the salary of the receptionist and to pay one-fourth of the utilities. Paid P750 for the rent of the office. Purchased supplies (blank CDs, poster board, extension cords, etc.) from City Office Supply Co. for P350. Agreed to pay P100 within 10 days and the remainder by July 5, 2010. Paid P600 to a local radio station to advertise the services of Music Depot twice daily for two weeks. Paid P500 to a local electronics store for renting digital recording equipment. Paid P250 (music expense) to Cool Music for the use of its current music demos to make various music sets. June 4 June 6 June 8 June 12 June 13 Paid City Office Supply Co. P100 on account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Complete
Transcribed Image Text:Owner's Equity
Drawings
Date
Assets
Liabilities
Capital
Revenues
Expenses
Sample:
June 1
+ 8,000
+8,000
The assets and capital are increased because of the owner's contribution of cash
into the business. Continue the table below:
Owner's Equity
Date
Assets
Liabilities
Capital
Drawings
Revenues
Expenses
June 2
June 3
June 4
June 6
June 8
June 12
June 13
June 16
June 22
June 25
June 29
June 30
June 30
June 30
June 30
June 30
June 30
June 30
Transcribed Image Text:Exercise
Recording transactions in transaction worksheet:
Lee Chang enjoys listening to all types of music and owns countless CDs. Over the
years, Lee 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, Lee served as a guest disc jockey on a local radio
station. In addition, Lee has entertained at several friends' parties as the host deejay.
On June 1, 2010, Lee established a proprietorship known as Music Depot. Using an
extensive collection of music CDs, Lee will serve as a disc jockey on a fee basis for
weddings, college parties, and other events. During June, Lee entered into the
following transactions:
June 1
June 2
June 3
Deposited P8,000 in a checking account in the name of Music Depot.
Received P2,400 from a local radio station for serving as the guest disc jockey for June.
Agreed to share office space with a local real estate agency, Upstairs Realty. Music Depot will
pay % of the rent. In addition, Music Depot agreed to pay a portion of the salary of the
receptionist and to pay one-fourth of the utilities. Paid P750 for the rent of the office.
Purchased supplies (blank CDs, poster board, extension cords, etc.) from City Office Supply
Co. for P350. Agreed to pay P100 within 10 days and the remainder by July 5, 2010.
Paid P600 to a local radio station to advertise the services of Music Depot twice daily for two
weeks.
Paid P500 to a local electronics store for renting digital recording equipment.
Paid P250 (music expense) to Cool Music for the use of its current music demos to make
various music sets.
Paid City Office Supply Co. P100 on account.
Received P400 from a dentist for providing two music sets for the dentist to play for her
patients.
Served as disk jockey for a wedding party. The father of the bride agreed to pay P1,350 the
1st of July.
Received P500 from a friend for serving as the disc jockey for a cancer charity ball hosted by
the local hospital.
Paid P240 (music expense) to Galaxy Music for the use of its library of music demos.
Received P1,000 for serving as disc jockey for a local club's monthly dance.
Paid Upstairs Realty P400 for Music Depot's share of the receptionist's salary for June.
Paid Upstairs Realty P300 for Music Depot's share of the utilities for June.
Determined that the cost of supplies on hand is P170. Therefore, the cost of supplies used
during the month was P180.
Paid for miscellaneous expenses, P150.
Paid P800 royalties (music expense) to National Music Clearing for use of various artists'
music during the month.
Withdrew P200 of cash from Music Depot for personal use.
June 4
June 6
June 8
June 12
June 13
June 16
June 22
June 25
June 29
June 30
June 30
June 30
June 30
June 30
June 30
June 30
Indicate the effect of each transaction and the balances after each transaction in the
transaction worksheet.
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