Adjusting Entries 2
Ilen_G
Chapter3PSMusicLabWork.docxChapter 3 - Instruction #1
The unadjusted trial balance for PS Music as of July 31, 20Y5 is as follows:
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PS Music Unadjusted Trial Balance July 31, 20Y5 |
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Line Item Description |
Account No. |
Debit Balances |
Credit Balances |
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Cash |
11 |
9,945 |
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Accounts Receivable |
12 |
2,750 |
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|
Supplies |
14 |
1,020 |
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Prepaid Insurance |
15 |
2,700 |
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|
Office Equipment |
17 |
7,500 |
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|
Accounts Payable |
21 |
|
8,350 |
|
Unearned Revenue |
23 |
|
7,200 |
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Common Stock |
31 |
|
9,000 |
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Dividends |
33 |
1,750 |
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|
Fees Earned |
41 |
|
16,200 |
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Wages Expense |
50 |
2,800 |
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Office Rent Expense |
51 |
2,550 |
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|
Equipment Rent Expense |
52 |
1,375 |
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|
Utilities Expense |
53 |
1,215 |
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|
Music Expense |
54 |
3,610 |
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|
Advertising Expense |
55 |
1,500 |
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|
Supplies Expense |
56 |
180 |
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Miscellaneous Expense |
59 |
1,855 |
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40,750 |
40,750 |
Based on those balances and the additional data below, prepare adjusting journal entries. Include Posting References, using the account numbers in your spreadsheet. You will need the following additional accounts:
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Account # |
Account Name |
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18 |
Accumulated Depreciation-Office Equipment |
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22 |
Wages Payable |
|
57 |
Insurance Expense |
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58 |
Depreciation Expense |
The data needed to determine adjustments are as follows: If an amount box does not require an entry, leave it blank.
July 31: During July, PS Music provided guest disc jockeys for KXMD for a total of 115 hours. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600, which PS Music has already received payment for. Any additional hours beyond 80 will be billed to KXMD at $40 per hour.
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Account |
Post. Ref. |
Debit |
Credit |
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|
fill in the blank 2 |
fill in the blank 3 |
fill in the blank 4 |
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fill in the blank 6 |
fill in the blank 7 |
fill in the blank 8 |
July 31: Supplies on hand at July 31, $275.
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Account |
Post. Ref. |
Debit |
Credit |
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|
fill in the blank 10 |
fill in the blank 11 |
fill in the blank 12 |
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fill in the blank 14 |
fill in the blank 15 |
fill in the blank 16 |
July 31: The balance of the prepaid insurance account relates to the following July 1, 20Y5 transaction: "Paid a premium of $2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period."
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Account |
Post. Ref. |
Debit |
Credit |
|
|
fill in the blank 18 |
fill in the blank 19 |
fill in the blank 20 |
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fill in the blank 22 |
fill in the blank 23 |
fill in the blank 24 |
July 31: Depreciation of the office equipment is $50.
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Account |
Post. Ref. |
Debit |
Credit |
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|
fill in the blank 26 |
fill in the blank 27 |
fill in the blank 28 |
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fill in the blank 30 |
fill in the blank 31 |
fill in the blank 32 |
July 31: The balance of the unearned revenue account relates to the contract between PS Music and KXMD, described in the July 3, 20Y5 transaction, which included the following: "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 a guest disc jockey for 80 hours per month for a monthly fee of $3,600." In accordance with the contract, Peyton received $7,200 from KXMD as an advance payment for the first two months.
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Account |
Post. Ref. |
Debit |
Credit |
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fill in the blank 34 |
fill in the blank 35 |
fill in the blank 36 |
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fill in the blank 38 |
fill in the blank 39 |
fill in the blank 40 |
July 31: Accrued wages as of July 31 were $140.
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Account |
Post. Ref. |
Debit |
Credit |
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|
fill in the blank 42 |
fill in the blank 43 |
fill in the blank 44 |
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fill in the blank 46 |
fill in the blank 47 |
fill in the blank 48 |
Continuing Problem Chapter 3 - Instruction #2
Post the adjusting entries completed in Chapter 3 Part 1 to the ledgers in the spreadsheet you saved in Chapter 2 Part 3. Extend the account balance to the appropriate balance column after each posting. Be sure to save your work in the spreadsheet.
Chapter 3 - Instruction #3
Refer to the spreadsheet you updated in Chapter 3 Part 2 to prepare an adjusted trial balance. Note: Be sure to save this part with a screen shot or print it out. You will need to refer to your adjusted trial balance to complete the financial statements in Chapter 4 Part 1 of the continuing problem. If an amount box does not require an entry, leave it blank.
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PS Music Adjusted Trial Balance July 31, 20Y5 |
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Line Item Description |
Debit Balances |
Credit Balances |
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fill in the blank 2 |
fill in the blank 3 |
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fill in the blank 5 |
fill in the blank 6 |
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fill in the blank 8 |
fill in the blank 9 |
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fill in the blank 11 |
fill in the blank 12 |
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fill in the blank 14 |
fill in the blank 15 |
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fill in the blank 17 |
fill in the blank 18 |
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fill in the blank 20 |
fill in the blank 21 |
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fill in the blank 23 |
fill in the blank 24 |
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fill in the blank 26 |
fill in the blank 27 |
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fill in the blank 29 |
fill in the blank 30 |
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fill in the blank 32 |
fill in the blank 33 |
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fill in the blank 35 |
fill in the blank 36 |
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fill in the blank 38 |
fill in the blank 39 |
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fill in the blank 41 |
fill in the blank 42 |
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fill in the blank 44 |
fill in the blank 45 |
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fill in the blank 47 |
fill in the blank 48 |
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fill in the blank 50 |
fill in the blank 51 |
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fill in the blank 53 |
fill in the blank 54 |
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fill in the blank 56 |
fill in the blank 57 |
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fill in the blank 59 |
fill in the blank 60 |
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fill in the blank 62 |
fill in the blank 63 |
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fill in the blank 65 |
fill in the blank 66 |
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fill in the blank 67 |
fill in the blank 68 |
