The unadjusted trial balance of Dancin Music as of May 31, 2008, along with the adjustment data for the two months ended May 31, 2008, are shown in Chapter 3.
Based upon the adjustment data, the adjusted trial balance shown at the top of the following page was prepared.
Instructions
1. Optional. Using the data from Chapter 3, prepare an end of period spreadsheet (work sheet).
2. Prepare an income statement, a statement of owner’s equity, and a balance sheet. (Note: Kris Payne made investments in Dancin Music on April 1 and May 1, 2008.)
|
Dancin Music Adjusted Trial Balance May 31, 2008 |
||
|
|
Debit |
Credit |
|
|
Balances |
Balances |
|
Cash |
12,085 |
|
|
Accounts Receivable |
4,250 |
|
|
Supplies |
160 |
|
|
Prepaid Insurance |
3,080 |
|
|
Office Equipment |
5,000 |
|
|
Accumulated Depreciation—Office Equipment |
|
100 |
|
Accounts Payable |
|
5,750 |
|
Wages Payable |
|
200 |
|
Unearned Revenue |
|
2,400 |
|
Kris Payne, Capital |
|
12,500 |
|
Kris Payne, Drawing |
1,300 |
|
|
Fees Earned |
|
18,550 |
|
Wages Expense |
2,600 |
|
|
Office Rent Expense |
2,600 |
|
|
Equipment Rent Expense |
1,300 |
|
|
Utilities Expense |
910 |
|
|
Music Expense |
2,565 |
|
|
Advertising Expense |
1,730 |
|
|
Supplies Expense |
940 |
|
|
Insurance Expense |
280 |
|
|
Depreciation Expense |
100 |
|
|
Miscellaneous Expense |
600 |
|
|
|
39,500 |
39,500 |
3. Journalize and post the closing entries. The income summary account is #33 in the ledger of Dancin Music. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry.
4. Prepare a post closing trial balance.