Using the information provided below, journalize and post the adjusting and closing entries for Chris and Mary Jane's first month of business. Prepare a post-closing trial balance.
* On May 31, the company received its first utility bills totaling $375, which are not due until June.
* One month of the Prepaid Rent has expired.
* One month of the prepaid Insurance has expired.
* Danny and Mary Jane have decided to depreciate costumes and props using the straight-line method of depreciation. The costumes and props are expected to have a useful life of 5 years at which time they are expected to be worth $200.
* Employees of the business are paid based on a 5-day work week. The last day of the month fell in the middle of the work week; therefore, the employees have earned 2 days wages during the month of May and the remaining 3 days were in June.
HERE IS WHAT THIS INFORMATION IS BASED ON FOR THIS WORK
May 1 Danny and Mary Jane deposited $50,000 into business checking account
May 1 Rented theater building for shows - paid 6 months rent up front - $24,000
May 1 Purchased six-month insurance policy to cover rented building and customers - $3,000
May 1 Paid utility deposits - $250
May 5 Purchased advertisements in local newspapers and radio stations, $2,500
May 6 Purchased stage props and costumes for opening night - $1,200
May 10 Opening night was a success! Danny and MaryJane sold 100 tickets at $10 each
May 15 The remainder of the first week ticket sales totaled $2,000
May 16 Paid workers for first week of services - $1,000
May 22 Second week ticket sales totaled $2,400
May 23 Paid workers for second week of services - $1,000
May 29 Third week ticket sales totaled $3,000
May 30 Paid workers for third week of services - $1,000
Journal, ledger and trial balance accounting issues are explicated.