INSTRUCTIONS : PART 1. Based on the following fact pattern and data, journalize the transactions of the PS Music Company for the month of June. Part 2. Complete and balance "T" Accounts for each account listed in the chart of accounts. Peyton Smith enjoys listening to all types of music and owns countless CDs. Over the years, Peyton 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, served as a guest disc jockey on a local radio station. In addition, Peyton has entertained at several friends' parties as a guest DJ. On June 1, 20Y5, Peyton established a corporation known as PS Music. Using an extensive collection of music MP3 files, Peyton will serve as a DJ on a fee basis for weddings, parties, and other events. During June, Payton entered into the following transactions: Date Description 1-Jun Deposited $4,000 in a checking account in the name of PS Music in exchange for common stock. 2-Jun Received $3,500 fee from a local radio station for serving as the guest disc jockey for June. 4-Jun Paid $800 for the rent of the office. 4-Jun Purchased $350 of supplies on account from City Supply Co. Agreed to pay $100 in 10 days and the balance by July 5 6-Jun Paid $500 to a local radio station to advertise the services of PS Music twice daily for two weeks. 8-Jun Paid $675 to a local electronics store for renting digital recording equipment. 12-Jun Paid $350 (music expense) to Cool Music for the use of its current music demos to make various music sets. 13-Jun Paid City Supply Co. $100 on account. 16-Jun Received $300 from a dentist for providing two music sets for the dentist to play for her patients. 22-Jun Served as disc jockey for a wedding party. The father of the bride agreed to pay $1,000 in July. 25-Jun Received $500 for serving as the disc jockey for a cancer charity ball hosted by the local hospital. 29-Jun Paid $240 (music expense) to Galaxy Music for the use of its library of music demos. 30-Jun Received $900 for serving as PS disc jockey for a local club’s monthly dance. 30-Jun Paid Pinnacle Realty $400 for PS Music’s share of the receptionist’s wages for June. 30-Jun Paid Pinnacle Realty $300 for PS Music’s share of the utilities for June. 30-Jun Determined that the cost of supplies on hand is $170. Therefore, the cost of supplies used during the month was $18 30-Jun Paid for miscellaneous expenses, $415. 30-Jun Paid $1,000 royalties (music expense) to National Music Clearing for use of various artists’ music during the month. 30-Jun Paid dividends, $500. journalize the transactions of balance "T" Accounts for each account General Journal er the years, Peyton the ability to put together ation. In addition, n extensive ngs, parties, and change for common stock. disc jockey for June. pay $100 in 10 days and the balance by July 5, 20Y5. twice daily for two weeks. sic demos to make various music sets. tist to play for her patients. ed to pay $1,000 in July. osted by the local hospital. music demos. ges for June. ost of supplies used during the month was $180. Date 1-Jun Description eral Journal Debit Credit INSTRUCTIONS: Post transactions from the Journal to the named "T" accounts. Next, calculate the account balance for the "T" account by subtracting the larger side of the account from the smaller side of the account. See example below: Sample Asset "T" Acct 6000 2000 1000 3900 4100 600 Balance is: [9000-8600 = $400 CASH ACCT. RECEIVABLE ACCT. RECEIVABLE SUPPLIES ACCT. PAYABLE OWNER'S CAPITAL RENT EXPENSE ADVERTISING EXP MUSIC OWNER'S CAPITAL RENT EXPENSE ADVERTISING EXP MUSIC
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