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 2009: Accounts Payable $ 11,900
Accounts Receivable 384,000
Cash 16,300
Common Stock 1,000
Insurance Payable 11200
Interest Payable 100,000
Notes Payable (Long-term) 4000
Rent Payable (Building) 10000
Retained Earnings, 12/31/201101,200
During 2009, the following transactions occurred (the events described below are aggregations of many individual events):
a. Taping services in the amount of $994,000 were billed.
b. The accounts receivable at the beginning of the year were collected.
c. In addition, cash for $983,000 of the services billed in transaction a was collected.
d. 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 at year-end.
e. The equipment rent payable on January 1 was paid. In addition, $84,000 of equipment rental costs was paid in cash. There was no rent payable or prepaid at year-end.
f. Utilities expense of $56,000 was incurred and paid in 2009.
g. Salaries expense for the year was $702,000. All $702,000 was paid in 2009.
h. 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.
i. Income taxes for 2009 in the amount of $19,700 were incurred and paid.

the journal entries for the unrecorded transactions are:

a. Taping services in the amount of $994,000 were billed.

Dr Accounts receivable 994,000

    Cr Service revenue 994,000

b. The accounts receivable at the beginning of the year were collected.

Dr Cash 384,000

    Cr Accounts receivable 384,000

c. In addition, cash for $983,000 of the services billed in transaction a was collected.

Dr Cash 983,000

    Cr Accounts receivable 983,000

d. 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 at year-end.

Dr Rent expense 48,000

Dr Rent payable 10,000

    Cr Cash 58,000

e. The equipment rent payable on January 1 was paid. In addition, $84,000 of equipment rental costs was paid in cash. There was no rent payable or prepaid at year-end.

there is no equipment rent payable

Dr Equipment rent expense 84,000

    Cr Cash 84,000

f. Utilities expense of $56,000 was incurred and paid in 2009.

Dr utilities expense 56,000

    Cr Cash 56,000

g. Salaries expense for the year was $702,000. All $702,000 was paid in 2009.

Dr Salaries expense 702,000

    Cr Cash 702,000

h. 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.

Dr Interest expense 11,000

Dr Interest payable 100,000

    Cr Cash 111,000

i. Income taxes for 2009 in the amount of $19,700 were incurred and paid.

Dr Taxes expense 19,700

    Cr Cash 19,700

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