Question

Save a copy of the spreadsheet by clicking on the "Spreadsheet" here. You will need this completed spreadsheet for the remaining parts of this Continuing Problem. Be sure to save the spreadsheet in a safe place for future use.

PS Music's chart of accounts and the balance of accounts as of July 1, 2019 (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	Peyton Smith, Capital	4,000		56	Supplies Expense	180
32	Peyton Smith, Drawing	500		59	Miscellaneous Expense	415

Required:

Review the spreadsheet and notice that the July 1, 2019, account balances have been entered in the appropriate balance column of the four-column accounts. The word Balance has been entered in the Item column, and a check mark (√) has been entered in the Posting Reference column.

Answer 1

The balances of the Spreadsheet can be checked through the putting the balances of the Accounts in the Tabular form called Trail Balances. The debit balances are put on debit side and credit balances on the credit side. So,

Four Column Trial Balance towards the Balances in Spreadsheet accounts:
	Ref.	Debit $	Credit $
Cash	11	3920
Accounts Receivable	12	1000
Supplies	14	170
Prepaid insurance	15	0
Office equipment	17	0
Accounts payable	21		250
Unearned revenue	23		0
Peyton Smith, Capital	31		4000
Peyton Smith, Drawing	32	500
Fees Earned	41		6200
Wages Expense	50	400
Office Rent Expense	51	800
Equipment rent Expense	52	675
Utilities expense	53	300
Music Expense	54	1590
advertising Expense	55	500
supplies expense	56	180
Miscellaneous expense	59	415
Total		10450	10450