Accruals and Deferrals

CH2 HW

ACCT2301 PRINCIPLES OF ACCOUNTING I - Fall 2023
WEEKS 4 and 5 - Homework Assignment (CH2)
Assignment due by Sunday, September 24, 2023
Peyton Smith Music
		The unadjusted trial balance that you prepared for PS Music at then end of Chapter 2 should appear as follows:
			PS Music
			Unadjusted Trial Balance
			July 31, 20Y5
					Account No.	Debit Balances	Credit Balances
				Cash	11	9,945
				Account Receivable	12	2,750
				Supplies	14	1,020
				Prepaid Insruance	15	2,700
				Office Equipment	17	7,500
				Accounts Payable	21		8,350
				Unearned Revenue	23		7,200
				Common Stock	31		9,000
				Dividends	33	1,750
				Fees Earned	41		16,200
				Wages Expense	50	2,800
				Office Rent Expense	51	2,550
				Equipment Rent Expense	52	1,375
				Utilities Expense	53	1,215
				Music Expense	54	3,610
				Advertising Expense	55	1,500
				Supplies Expense	56	180
				Miscellaneous Expense	59	1,855
						40,750	40,750
		The data needed to determine adjustments are as follows:
		July	31	During July, PS Music provided guest disc jockeys for KXMD for a total of 115 hours. For information on the amount
				of the accured revenue to be billed to KXMD, see the contract described in the July 3 transaction at the
				end of Chapter 2.
				"On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract
				requires PS Music to provide guest disc jockey for 80 hours per month for a fee of $3,500. Any additional hours beyond 80 will be billed to
				KXMD at $40 per hour. In accordance with the contract, Peyton received $7,200 from KXMD as an advance payment for the first two months."
			31	Supplies on hand at July 31, $275
			31	The balance of the prepaid insurance account relates to the July 1 transaction at the end of Chapter 2
				"Paid a premium of $2,700 for comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period."
			31	Depreciation of the office equipment is $50.
			31	The balance of the unearned revenue account relates to the contract between PS Music and KXMD, described in the July 3
				transaction at the end of Chapter 2.
			31	Accrued wages as of July 31 were $140
		Instructions:
			1.	Prepare adjusting journal entries. You will need the following additional accounts:
				18 Accumulated Depreciation-Office Equipment
				22 Wages Payable
				57 Insurance Expense
				58 Depreciation Expense
			2.	Post the adjusting entries, inserting balances in the accounts affected.
			3.	Prepare an adjusted trial balance.
	1			JOURNAL		Page	3
		Date		Description (Account Name)	Post. Ref.	Debit	Credit
		20Y5
		July	31	Accounts Receivable	12	- 0
				Fees Earned	41		- 0
			1	Supplies Expense		- 0
				Supplies used			- 0
			1	Insurance Expense		- 0
				Prepaid Insurance			- 0
			2	Depreciation Expense		- 0
				Accum. Depr.-Office Equipment			- 0
			3	Unearned Revenue		- 0
				Fees Earned			- 0
			4	Wages Expense		- 0
				Wages Payable			- 0
	2		ACCOUNT:	Cash			Account No.		11
		Date		Description (Leave Blank)	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	3,920	- 0
			1		1	5,000	- 0	8,920	- 0
			1		1	- 0	1,750	7,170	- 0
			1		1	- 0	2,700	4,470	- 0
			2		1	1,000	- 0	5,470	- 0
			3		1	7,200	- 0	12,670	- 0
			3		1	- 0	250	12,420	- 0
			4		1	- 0	900	11,520	- 0
			8		1	- 0	200	11,320	- 0
			11		1	1,000	- 0	12,320	- 0
			13		1	- 0	700	11,620	- 0
			14		1	- 0	1,200	10,420	- 0
			16		2	2,000	- 0	12,420	- 0
			21		2	- 0	620	11,800	- 0
			22		2	- 0	800	11,000	- 0
			23		2	750	- 0	11,750	- 0
			27		2	- 0	915	10,835	- 0
			28		2	- 0	1,200	9,632	- 0
			29		2	- 0	540	9,095	- 0
			30		2	500	- 0	9,595	- 0
			31		2	3,000	- 0	12,595	- 0
			31		2	- 0	1,400	11,195	- 0
			31		2	- 0	1,250	9,945	- 0
			ACCOUNT:	Accounts Receivable			Account No.		12
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	1,000	- 0
			2		1	- 0	1,000	- 0	- 0
			23		2	1,750	- 0	1,750	- 0
			30		2	1,000		2,750
			31			- 0	- 0	- 0	- 0
			ACCOUNT:	Supplies			Account No.		14
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	170	- 0
			18		2	850		1,020
			31	Adjusting		- 0	- 0	- 0	- 0
			ACCOUNT:	Prepaid Insurance			Account No.		15
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1		1	2,700		2,700
			31	Adjusting		- 0	- 0	- 0	- 0
			ACCOUNT:	Office Equipment			Account No.		17
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	5		1	7,500	- 0	7,500	- 0
			ACCOUNT:	Accumulated Depreciation-Office Equipment			Account No.		18
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	31	Adjusting		- 0	- 0	- 0	- 0
			ACCOUNT:	Accounts Payable			Account No.		21
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	- 0	250
			3		1	250	- 0	- 0	- 0
			5		1	- 0	7,500	- 0	7,500
			18		2	- 0	850	- 0	8,350
			ACCOUNT:	Wages Payable			Account No.		23
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	31	Adjusting	1	- 0	- 0	- 0	- 0
			ACCOUNT:	Unearned Revenue			Account No.		23
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	3		1	- 0	7,200	- 0	7,200
		July	31	Adjusting		- 0	- 0	- 0	- 0
			ACCOUNT:	Common Stock			Account No.		31
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	- 0	4,000
			1		1	- 0	5,000	- 0	9,000
			ACCOUNT:	Dividends			Account No.		33
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	500	- 0
			31		2	1,250	- 0	1,750	- 0
			ACCOUNT:	Fees Earned			Account No.		41
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	- 0	6,200
			11		1	- 0	1,000	- 0	7,200
			16		2	- 0	2,000	- 0	9,200
			23		2	- 0	2,500	- 0	11,700
			30		2	- 0	1,500	- 0	13,200
			31		2	- 0	3,000	- 0	16,200
			31	Adjusting		- 0	- 0	- 0	- 0
			31	Adjusting		- 0	- 0	- 0	- 0
			ACCOUNT:	Wages Expense			Account No.		50
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	400	- 0
			14		1	1,200	- 0	1,600	- 0
			28		2	1,200		2,800
			31	Adjusting		- 0	- 0	- 0	- 0
			ACCOUNT:	Office Rent Expense			Account No.		51
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	800	- 0
			1		1	1,750	- 0	2,550	- 0
			ACCOUNT:	Equipment Rent Expense			Account No.		52
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	675	- 0
			13		1	700	- 0	1,375	- 0
			ACCOUNT:	Utilities Expense			Account No.		53
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	300	- 0
			27		2	915	- 0	1,215	- 0
			ACCOUNT:	Music Expense			Account No.		54
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	1,590	- 0
			21		2	620	- 0	2,210	- 0
			31		2	1,400	- 0	3,610	- 0
			ACCOUNT:	Advertising Expense			Account No.		55
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√	- 0	- 0	500	- 0
			8		1	200	- 0	700	- 0
			22		2	800	- 0	1,500	- 0
			ACCOUNT:	Supplies Expense			Account No.		56
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	1	Balance	√		- 0	180	- 0
			31	Adjusting		- 0	- 0	- 0	- 0
			ACCOUNT:	Insurance Expense			Account No.		57
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	31	Adjusting		- 0	- 0	- 0	- 0
			ACCOUNT:	Depreciation Expense			Account No.		58
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y5
		July	31	Adjusting		- 0	- 0	- 0	- 0
			ACCOUNT:	Miscellaneous Expense			Account No.		59
		Date		Description	Post. Ref.	Debit	Credit	Balance
								Debit	Credit
		20Y9
		July	1	Balance	√	- 0	- 0	415	- 0
			4		1	900	- 0	1,315	- 0
			29		2	540	- 0	1,855	- 0
	3			PS Music
				Adjusted Trial Balance
				July 31, 20Y5
						Account No.	Debit Balances	Credit Balances
				Cash		11	- 0	- 0
				Accounts receivable		12	- 0	- 0
				Supplies		14	- 0	- 0
				Prepaid Insurance		15	- 0	- 0
				Office Equipment		17	- 0	- 0
				Accumulated Depreciation-Office Equip.		18
				Accounts Payable		21	- 0	- 0
				Wages Payable		22
				Unearned Revenue		23	- 0	- 0
				Common Stock		31	- 0	- 0
				Dividends		33	- 0	- 0
				Fees Earned		41	- 0	- 0
				Wages Expense		50	- 0	- 0
				Office Rent Expense		51	- 0	- 0
				Equipment Rent Expense		52	- 0	- 0
				Utilities Expense		53	- 0	- 0
				Music Expense		54	- 0	- 0
				Advertising Expense		55	- 0	- 0
				Supplies Expense		56	- 0	- 0
				Insurance Expense		57
				Depreciation Expense		58
				Miscellaneous		59	- 0	- 0
							- 0	- 0