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Western Sound Studios records and masters audio tapes of popular artists in live concerts. The performers use the tapes to prepare “live” albums, CDs, and MP3s. The following account balances were available at the beginning of 2019:
Accounts Payable$11,900Accounts Receivable384,000Cash16,300Common Stock165,000Insurance Payable1,000Interest Payable11,200Notes Payable (Long-term)100,000Rent Payable (Building)10,000Retained Earnings, 12/31/2018101,200
During 2019, the following transactions occurred (the events described below are aggregations of many individual events):
Required:
1. Scroll down to the T-accounts. The account title for each has been provided. Using the data provided, enter the applicable beginning balances.
2. Analyze each transaction. Journalize as appropriate. For compound transactions, if an amount box does not require an entry, leave it blank.(Note: Ignore the date since these events are aggregations of individual events.)
a.
(Record billing of services performed)b.
(Record collection of cash on account)c.
(Record collection of cash on account)d.
(Record payment of rent)e.
(Record payment of insurance)f.
(Record payment of utilities)g.
(Record payment of salaries)h.
(Record payment of interest)i.
(Record payment of income taxes)
3. Post your journal entries to the appropriate T-accounts. If a balance is zero, please enter zero (“0”).
CashBeg. Bal.
End. Bal.
Accounts ReceivableBeg. Bal.
End. Bal.
Accounts PayableBeg. Bal.End. Bal.Interest Payable
Beg. Bal.End. Bal.
Rent Payable
Beg. Bal.End. Bal.Insurance Payable
Beg. Bal.End. Bal.
Notes PayableBeg. Bal.End. Bal.Common StockBeg. Bal.End. Bal.
Retained EarningsBeg. Bal.End. Bal.Service Revenue
End. Bal.
Rent Expense
End. Bal. Insurance Expense
End. Bal.
Utilities Expense
End. Bal. Salaries Expense
End. Bal.
Interest Expense
End. Bal. Income Taxes Expense
End. Bal.
4. Use the ending balances in the T-accounts to prepare a trial balance. If an amount box does not require an entry, leave it blank.
Western Sound StudiosTrial BalanceDecember 31, 2019AccountDebitCredit
$$
$$
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