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Continuing Problem Chapter 2-Instructio n#2: Account Post. Ref. Debit Credit

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Sharon Issa

The document provides a series of business transactions conducted by PS Music during July, including investments, expenses, revenues, and payments. It instructs the user to analyze and journalize each transaction in a two-column journal format by debiting and crediting the appropriate accounts. The journal includes transactions such as rent and insurance payments, revenues from services, purchases of supplies and equipment, and wages paid.

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© All Rights Reserved
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Continuing Problem Chapter 2-Instructio n#2: Account Post. Ref. Debit Credit

Uploaded by

Sharon Issa
291 views10 pages
The document provides a series of business transactions conducted by PS Music during July, including investments, expenses, revenues, and payments. It instructs the user to analyze and journalize each transaction in a two-column journal format by debiting and crediting the appropriate accounts. The journal includes transactions such as rent and insurance payments, revenues from services, purchases of supplies and equipment, and wages paid.

Original Description:

Journals for the Continuing Problem 27e. Accounting I Cengage.

Original Title

Journals Del Continuing Problem_27e

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The document provides a series of business transactions conducted by PS Music during July, including investments, expenses, revenues, and payments. It instructs the user to analyze and journalize each transaction in a two-column journal format by debiting and crediting the appropriate accounts. The journal includes transactions such as rent and insurance payments, revenues from services, purchases of supplies and equipment, and wages paid.

Copyright:

© All Rights Reserved
Download as XLSX, PDF, TXT or read online from Scribd
Download as xlsx, pdf, or txt
291 views10 pages

Continuing Problem Chapter 2-Instructio n#2: Account Post. Ref. Debit Credit

Uploaded by

Sharon Issa
The document provides a series of business transactions conducted by PS Music during July, including investments, expenses, revenues, and payments. It instructs the user to analyze and journalize each transaction in a two-column journal format by debiting and crediting the appropriate accounts. The journal includes transactions such as rent and insurance payments, revenues from services, purchases of supplies and equipment, and wages paid.

Copyright:

© All Rights Reserved
Download as XLSX, PDF, TXT or read online from Scribd
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1.

Continuing
Problem
Chapter 2-
Instructio
n #2
The
following
transactions
were
completed
by PS Music
during July,
the second
month of
the
business's
operations:

Analyze and
journalize
each
transaction
in the two-
column
journal
below.
Include
Posting
References,
using the
account
numbers in
your
spreadsheet
.

If an
amount box
does not
require an
entry, leave
it blank.

July
1: Peyton
Smith made
an
additional
investment
in PS Music
by
depositing
$5,000 in
PS Music's
checking
account.

Account Post. Ref. Debit Credit


Cash
Peyton Smith, Capital

July
1: Instead
of
continuing
to share
office space
with a local
real estate
agency,
Peyton
decided to
rent office
space near
a local
music store.
Paid rent for
July,
$1,750.

Account Post. Ref. Debit Credit

Office Rent
Expense

Cash

July 1: Paid
a premium
of $2,700
for a
comprehens
ive
insurance
policy
covering
liability,
theft, and
fire. The
policy
covers a
one-year
period.

Account Post. Ref. Debit Credit


Prepaid
Insurance
Cash
July
2: Received
$1,000 cash
from
customers
on account.

Account Post. Ref. Debit Credit


Cash
Accounts Receivable

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 a
guest disc
jockey for
80 hours
per month
for a
monthly fee
of $3,600.
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

Account Post. Ref. Debit Credit


Cash
Unearned Revenue
July 3: Paid
$250 to
creditors on
account.

Account Post. Ref. Debit Credit


Accounts
Payable
Cash

July 4: Paid
an attorney
$900 for
reviewing
the July 3
contract
with KXMD.
(Record as
Miscellaneo
us
Expense.)

Account Post. Ref. Debit Credit


Miscellane
ous
Expense
Cash

July
5: Purchase
d office
equipment
on account
from Office
Mart,
$7,500.

Account Post. Ref. Debit Credit


Office
Equipment

Accounts Payable

July 8: Paid
for a
newspaper
advertiseme
nt, $200.

Account Post. Ref. Debit Credit


Advertisin
g Expense
Cash

July
11: Receive
d $1,000 for
serving as a
disc jockey
for a party.

Account Post. Ref. Debit Credit


Cash
Fees Earned

July
13: Paid
$700 to a
local audio
electronics
store for
rental of
digital
recording
equipment.

Account Post. Ref. Debit Credit


Equipment
Rent
Expense
Cash

July
14: Paid
wages of
$1,200 to
receptionist
and part-
time
assistant.

Account Post. Ref. Debit Credit


Wages
Expense
Cash
July
16: Receive
d $2,000 for
serving as a
disc jockey
for a
wedding
reception.

Account Post. Ref. Debit Credit


Cash
Fees Earned

July
18: Purchas
ed supplies
on account,
$850.

Account Post. Ref. Debit Credit


Supplies
Accounts Payable

July
21: Paid
$620 to
Upload
Music for
use of its
current
music
demos in
making
various
music sets.

Account Post. Ref. Debit Credit


Music
Expense
Cash
July
22: Paid
$800 to a
local radio
station to
advertise
the services
of PS Music
twice daily
for the
remainder
of July.

Account Post. Ref. Debit Credit


Advertisin
g Expense
Cash

July
23: Served
as disc
jockey for a
party for
$2,500.
Received
$750, with
the
remainder
due August
4, 2019.

Account Post. Ref. Debit Credit


Cash
Accounts
Receivable

Fees
Earned

July
27: Paid
electric bill,
$915.

Account Post. Ref. Debit Credit


Utilities
Expense
Cash
July
28: Paid
wages of
$1,200 to
receptionist
and part-
time
assistant.

Account Post. Ref. Debit Credit


Wages
Expense
Cash

July
29: Paid
miscellaneo
us
expenses,
$540.

Account Post. Ref. Debit Credit


Miscellane
ous
Expense
Cash

July
30: Served
as a disc
jockey for a
charity ball
for $1,500.
Received
$500, with
the
remainder
due on
August 9,
2019.

Account Post. Ref. Debit Credit


Cash
Accounts
Receivable

Fees
Earned
July
31: Receive
d $3,000 for
serving as a
disc jockey
for a party.

Account Post. Ref. Debit Credit


Cash
Fees Earned

July
31: Paid
$1,400
royalties
(music
expense) to
National
Music
Clearing for
use of
various
artists'
music
during July.

Account Post. Ref. Debit Credit


Music
Expense
Cash

July
31: Withdre
w $1,250
cash from
PS Music for
personal
use.

Account Post. Ref. Debit Credit


Peyton
Smith,
Drawing
Cash
Check My
Work2 more
Check My
Work uses
remaining.
Peyton Smith, Capital
Office Rent Expense
Prepaid Insurance
Accounts Receivable
Unearned Revenue
Accounts Payable
Miscellaneous Expense
Advertising Expense
Fees earned
Equipment Rent Expense
Wages Expense
Fees earned
Music Expense
Advertising Expense
Fees earned
Utilities Expense
Wages Expense
Miscellaneous Expense
Fees earned
Fees earned
Music Expense
Peyton Smith, Drawing

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