Chapter 2, Problem 2.67BP

(Learning Objectives 3, 5: Analyze the impact of business transactions on accounts and construct a trial balance) During the first month of operations (May 2018), Shreve Music Corporation completed the following selected transactions:

1. a. The business received cash of $46,000 and a building with a fair value of $106,000.

   The corporation issued common stock to the stockholders.

2. b. Borrowed $60,000 from the bank; signed a note payable.
3. c. Paid $47,000 for music equipment.
4. d. Purchased supplies on account, $530.
5. e. Paid employees’ salaries, $5,700.
6. f. Received $3,710 for music services performed for customers.
7. g. Performed services for customers on account, $12,900.
8. h. Paid $300 of the account payable created in transaction d.
9. i. Received a $700 bill for utilities expense that will be paid in the near future.
10. j. Received cash on account, $1,200.
11. k. Paid the following cash expenses: (1) rent, $1,100; (2) advertising. $800.

Requirements

1. 1. Record each transaction directly in the T-accounts without using a journal. Use the letters to identify the transactions. Determine the ending balance in each account.
2. 2. Prepare the trial balance of Shreve Music Corporation at May 31, 2018.