Accounting I

CH2 HW

ACCT2301 PRINCIPLES OF ACCOUNTING I - Fall 2023
WEEKS 3 and 4 - Homework Assignment (CH2)
Assignment due by Sunday, September 10, 2023
Peyton Smith Music
		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 in exchange for common stock by depositng $5,000 in PS Music's checking account.
			1	Instead of continuing to share office spce with a local real estate agency, Peyton decided to rent office space near a local music store.
				Paid rent for July, $1,750.
			1	Paid a premium of $2,700 for comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period.
			2	Received $1,000 on account.
			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 guest disc jockey for 80 hours per month for a fee of $3,500. 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 on a account.
			4	Paid an attorney $900 for reviewing the July 3 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 electronic store for rental of digital recording equipment.
			14	Paid wages of $1,200 to receptionist and part-time assistant.
		Enter the following transactions on Page 2 of the two-column journal:
		July	16	Received $2,000 for serving as a disco jockey for a wedding reception.
			18	Purchased supplies on account, $850.
			21	Paid $620 to Upload Music for use of its current music demos in making various sets.
			22	Paid $800 to a local radio station to advertise the services of PS Music twioce daily for the renainder of July.
			23	Served as disc jockey for a party for $2,500. Received $750, with the remainderdue August 4, 20Y5.
			27	Paid electric bill, $915.
			28	Paid wages of $1,200 to receptionist and part-time assistant.
			29	Paid miscellaneous expenses, $540.
			30	Served as a disc jockey for a charity ball for $1,500. Received $500, with the remainder due on August 9, 20Y5.
			31	Received $3,000 for serving as a disc jockey for a party.
			31	Paid $1,400 royalties (music expense) to National Music Clearing for use of various artists' music during July.
			31	Paid Dividends $1,250.
		PS Music's chart of accounts and the balance of accounts as of July 1, 20Y5 (all normal balances), are as follows:
			11	Cash	$ 3,920	41	Fees Earned		$ 6,200
			12	Account Receivable	1,000	50	Wages Expense		400
			14	Supplies	170	51	Office Rent Expense		800
			15	Prepaid Insruance	- 0	52	Equipment Rent Expense		675
			17	Office Equipment	- 0	53	Utilities Expense		300
			21	Accounts Payable	250	54	Music Expense		1,590
			23	Unearned Revenue	- 0	55	Advertising Expense		500
			31	Common Stock	4,000	56	Supplies Expense		180
			33	Dividends	500	59	Miscellaneous Expense		415
		Instructions:
			1.	Enter the July 1, 20Y, account balances in the appropriate balance column of a four-column account. Write Balance in the Item
				column, and place a check mark in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in
				the ledger before proceeding with the next instructions).
			2.	Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations.
			3.	Post the journal to the ledger, extending the account balance to the appropriate balance column after ech posting.
			4.	Prepare an unadjusted trial balance as of July 31, 20Y5.
	2 and 3			JOURNAL		Page	1
		Date		Description (Account Name)	Post. Ref.	Debit	Credit
		20Y5
		July	1	Cash	11	5,000		(first entry provided by your instructor)
				Common Stock	31		5,000
			1	Office Rent Expense		- 0
				Cash			- 0
			1	Prepaid Insurance		- 0
				Cash			- 0
			2	Cash		- 0
				Accounts Receivable			- 0
			3	Cash		- 0
				Unearned Revenue			- 0
			4	Miscellaneous Expense		- 0
				Cash			- 0
			5	Office Equipment		- 0
				Accounts Payable			- 0
			8	Advertising Expense		- 0
				Cash			- 0
			11	Cash		- 0
				Fees Earned			- 0
			13	Equipment Rent Expense		- 0
				Cash			- 0
			14	Wages Expense		- 0
				Cash			- 0
				JOURNAL		Page	2
		Date		Description (Account Name)	Post. Ref.	Debit	Credit
		20Y5
		July	16	Cash		- 0
				Fees Earned			- 0
			18	Supplies		- 0
				Accounts Payable			- 0
			21	Music Expense		- 0
				Cash			- 0
			22	Advertising Expense		- 0
				Cash			- 0
			23	Cash		- 0
				Accounts Receivable		- 0
				Fees Earned			- 0
			27	Utilities Expense		- 0
				Cash			- 0
			28	Wages Expense		- 0
				Cash			- 0
			29	Miscellaneous Expense		- 0
				Cash			- 0
			30	Cash		- 0
				Accounts Receivable		- 0
				Fees Earned			- 0
			31	Cash		- 0
				Fee Earned			- 0
			31	Music Expense		- 0
				Cash			- 0
			31	Dividends		- 0
				Cash			- 0
	1 and 3		ACCOUNT:	Cash			Account No.		11
		Date		Description (Leave Blank)	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	3,920	- 0	(first entry provided by your instructor)
			1		1	- 0	- 0	- 0	- 0
			1		1	- 0	- 0	- 0	- 0
			1		1	- 0	- 0	- 0	- 0
			2		1	- 0	- 0	- 0	- 0
			3		1	- 0	- 0	- 0	- 0
			3		1	- 0	- 0	- 0	- 0
			4		1	- 0	- 0	- 0	- 0
			8		1	- 0	- 0	- 0	- 0
			11		1	- 0	- 0	- 0	- 0
			13		1	- 0	- 0	- 0	- 0
			14		1	- 0	- 0	- 0	- 0
			16		2	- 0	- 0	- 0	- 0
			21		2	- 0	- 0	- 0	- 0
			22		2	- 0	- 0	- 0	- 0
			23		2	- 0	- 0	- 0	- 0
			27		2	- 0	- 0	- 0	- 0
			28		2	- 0	- 0	- 0	- 0
			29		2	- 0	- 0	- 0	- 0
			30		2	- 0	- 0	- 0	- 0
			31		2	- 0	- 0	- 0	- 0
			31		2	- 0	- 0	- 0	- 0
			31		2	- 0	- 0	- 0	- 0
			ACCOUNT:	Accounts Receivable			Account No.		12
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	- 0	- 0
			2		1	- 0	- 0	- 0	- 0
			23		2	- 0	- 0	- 0	- 0
			30		2	- 0	- 0	- 0	- 0
			ACCOUNT:	Supplies			Account No.		14
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	- 0	- 0
			18		2	- 0	- 0	- 0	- 0
			ACCOUNT:	Prepaid Insurance			Account No.		15
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1		1	- 0	- 0	- 0	- 0
			ACCOUNT:	Office Equipment			Account No.		17
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	5		1	- 0	- 0	- 0	- 0
			ACCOUNT:	Accounts Payable			Account No.		21
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	- 0	- 0
			3		1	- 0	- 0	- 0	- 0
			5		1	- 0	- 0	- 0	- 0
			18		2	- 0	- 0	- 0	- 0
			ACCOUNT:	Unearned Revenue			Account No.		23
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	3		1	- 0	- 0	- 0	- 0
			ACCOUNT:	Common Stock			Account No.		31
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	- 0	- 0
			1		1	- 0	- 0	- 0	- 0
			ACCOUNT:	Dividends			Account No.		33
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	- 0	- 0
			31		2	- 0	- 0	- 0	- 0
			ACCOUNT:	Fees Earned			Account No.		41
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	- 0	- 0
			11		1	- 0	- 0	- 0	- 0
			16		2	- 0	- 0	- 0	- 0
			23		2	- 0	- 0	- 0	- 0
			30		2	- 0	- 0	- 0	- 0
			31		2	- 0	- 0	- 0	- 0
			ACCOUNT:	Wages Expense			Account No.		50
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	- 0	- 0
			14		1	- 0	- 0	- 0	- 0
			28		2	- 0	- 0	- 0	- 0
			ACCOUNT:	Office Rent Expense			Account No.		51
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	- 0	- 0
			1		1	- 0	- 0	- 0	- 0
			ACCOUNT:	Equipment Rent Expense			Account No.		52
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	- 0	- 0
			13		1	- 0	- 0	- 0	- 0
			ACCOUNT:	Utilities Expense			Account No.		53
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	- 0	- 0
			27		2	- 0	- 0	- 0	- 0
			ACCOUNT:	Music Expense			Account No.		54
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	- 0	- 0
			21		2	- 0	- 0	- 0	- 0
			31		2	- 0	- 0	- 0	- 0
			ACCOUNT:	Advertising Expense			Account No.		55
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	- 0	- 0
			8		1	- 0	- 0	- 0	- 0
			22		2	- 0	- 0	- 0	- 0
			ACCOUNT:	Supplies Expense			Account No.		56
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	- 0	- 0
			ACCOUNT:	Miscellaneous Expense			Account No.		59
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y9
		July	1	Balance	√	- 0	- 0	- 0	- 0
			4		1	- 0	- 0	- 0	- 0
			29		2	- 0	- 0	- 0	- 0
				PS Music
				Unadjusted Trial Balance
				July 31, 20Y5
						Account No.	Debit Balances	Credit Balances
				Cash		11	- 0	- 0
				Accounts receivable		12	- 0	- 0
				Supplies		14	- 0	- 0
				Prepaid Insurance		15	- 0	- 0
				Office Equipment		17	- 0	- 0
				Accounts Payable		21	- 0	- 0
				Unearned Revenue		23	- 0	- 0
				Common Stock		31	- 0	- 0
				Dividends		33	- 0	- 0
				Fees Earned		41	- 0	- 0
				Wages Expense		50	- 0	- 0
				Office Rent Expense		51	- 0	- 0
				Equipment Rent Expense		52	- 0	- 0
				Utilities Expense		53	- 0	- 0
				Music Expense		54	- 0	- 0
				Advertising Expense		55	- 0	- 0
				Supplies Expense		56	- 0	- 0
				Miscellaneous		59	- 0	- 0
							- 0	- 0