Western Sound Studios records and masters audio tapes of popular artists in live concerts. The performers use the tapes to prepare "live" albums,...

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):

1. Taping services in the amount of $994,000 were billed.
2. The accounts receivable at the beginning of the year were collected.
3. In addition, cash for $983,000 of the services billed in Transaction a was collected.
4. The rent payable for the building was paid. In addition, $48,000 of building rental costs was paid in cash. There was no rent payable or prepaid rent at year-end.
5. The insurance payable on January 1 was paid. In addition, $4,000 of insurance costs was paid in cash. There was no insurance payable or prepaid insurance at year-end.
6. Utilities expense of $56,000 was incurred and paid in 2019.
7. Salaries expense for the year was $702,000. All $702,000 was paid in 2019.
8. The interest payable at January 1 was paid. During the year, an additional $11,000 of interest was paid. At year-end no interest was payable.
9. Income taxes for 2019 in the amount of $19,700 were incurred and paid.

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

$$

$$