Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 5

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:

Enter the following transactions on Page 2 of the two-column journal:

PS Music's chart of accounts and the balance of accounts as of July 1, 2016 (all normal balances), are as follows:

Instructions
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 () in the Posting Reference column. ( Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.)
2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations.
3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting.
4. Prepare an unadjusted trial balance as of July 31, 2016.