The transactions completed by PS Music during June 2016 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the  business’s operations:...

Description
The transactions completed by PS Music during June 2016 were described at the end of Chapter 1.
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
y depositing $5,000 in PS Music’s checking account.
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.
1. Paid a premium of $2,700 for a comprehensive insurance policy covering liabil- ity, 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 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
advance payment for the first two months.
3. Paid $250 on account.
4. Paid an attorney $900 for reviewing the July 3 contract with 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 electronics store for rental of digital recording equip- ment.
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 disc jockey for a wedding reception.
18. Purchased supplies on account, $850.
21. Paid $620 to Upload Music for use of its cu
ent music demos in making vari- ous music sets.
22. Paid $800 to a local radio station to advertise the services of PS Music twice daily for the
emainder of July.
23. Served as disc jockey for a party for $2,500. Received $750, with the remainder due August 4,
2016.
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, 2016.
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, 2016 (all normal balances), are
as follows:
11 Cash $3,920 41 Fees Earned $6,200
12 Accounts Receivable 1,000 50 Wages Expense 400
14 Supplies 170 51 Office Rent Expense 800
15 Prepaid Insurance — 52 Equipment Rent Expense 675
17 Office Equipment — 53 Utilities Expense 300
21 Accounts Payable 250 54 Music Expense 1,590
23 Unearned Revenue — 55 Advertising Expense 500
31 Common Stock 4,000 56 Supplies Expense 180
33 Dividends
instructions
500 59 Miscellaneous Expense 415
1.Enter the July 1, 2016, account balances in the appropriate balance column of a four- column
account. Write Balance in the Item column, and place a check mark (ü) in the Posting Reference
column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding
with the next instruction.)
July 1 2016
Debit Credit
11.Cash Account Balance 3,920
12.Accounts Receivables Balance 1,000
14.Supplies Balance 170
15.Prepaid Insurance Balance -
17.office equipment -
21.Accounts Payable - 250
23.Unearned Revenue -
31. Common Stock 4,000
33.Dividends 500
41.fees Earned 6,200
50.Wages expense 400
51.office Rent 800
52.Equipmant Rent 675
53.Utilities Expenses 300
54.Music 1590
55.Advertising 500
56.Suplies Expense 180
59.Miscellaneous expenses 415
Balance 10,450 10,450
2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting
journal entry explanations.
July 1. Peyton Smith made an additional investment in PS Music in exchange for common stock
y depositing $5,000 in PS Music’s checking account.
July 1 Debit Credit
Cash 5000
Common Stock 5000
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.
July 1 Debit Credit
Rent Expense 1750
...