The unadjusted trial balance that you prepared for PS Music at the end of Chapter 2 should appear as follows:
UNADJUSTED TRIAL BALANCE
July 31, 2016
|12||Office Rent Expense||2,550.00|
|13||Equipment Rent Expense||1,375.00|
The data needed to determine adjustments are as follows:
|•||During July, PS Music provided guest disc jockeys for KXMD for a total of 115 hours. Since the company only contracted for 80 hours per month, make an adjusting entry to accrue the additional 35 hours of service. NOTE: The unearned revenue account will not be affected in this adjustment. For information on the amount of the accrued revenue to be billed to KXMD, see the contract described in the July 3, 2016, transaction at the end of Chapter 2.*|
|•||Supplies on hand at July 31, $275.|
|•||The balance of the prepaid insurance account relates to the July 1, 2016, transaction at the end of Chapter 2.*|
|•||Depreciation of the office equipment is $50.|
|•||The balance of the unearned revenue account relates to the contract between PS Music and KXMD, described in the July 3, 2016, transaction at the end of Chapter 2.*|
|•||Accrued wages as of July 31, 2016, were $140.
|1.||Prepare adjusting journal entries on page 3 of the journal. (Please note that pages 1 and 2 show the transactions that were recorded in Continuing Problem 2 from chapter 2.) Refer to the Chart of Accounts for exact wording of account titles. Note that Chart of Accounts has 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. Do not enter anything in the Item column. Indicate a zero balance by inserting a 0 (zero) in either of the Balance columns opposite the adjusting entry.|
|3.||Prepare an adjusted trial balance.|
Chapter 2 transactions:
|Jul.||1||Peyton Smith made an additional investment in PS Music in exchange for common stock by depositing $5,000 in PS Music’s checking account.|
|1||Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, $1,750.|
|1||Paid a premium of $2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period.|
|2||Received $1,000 on account.|
|3||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. 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.|
|3||Paid $250 on account.|
|4||Paid an attorney $900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.)|
|5||Purchased office equipment on account from Office Mart, $7,500.|
|8||Paid for a newspaper advertisement, $200.|
|11||Received $1,000 for serving as a disc jockey for a party.|
|13||Paid $700 to a local audio electronics store for rental of digital recording equipment.|
|14||Paid wages of $1,200 to receptionist and part-time assistant.|
|16||Received $2,000 for serving as a disc jockey for a wedding reception.|
|18||Purchased supplies on account, $850.|
|21||Paid $620 to Upload Music for use of its current music demos in making various music sets.|
|22||Paid $800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July.|
|23||Served as disc jockey for a party for $2,500. Received $750, with the remainder due August 4, 2016.|
|27||Paid electric bill, $915.|
|28||Paid wages of $1,200 to receptionist and part-time assistant.|
|29||Paid miscellaneous expenses, $540.|
|30||Served as a disc jockey for a charity ball for $1,500. Received $500, with the remainder due on August 9, 2016.|
|31||Received $3,000 for serving as a disc jockey for a party.|
|31||Paid $1,400 royalties (music expense) to National Music Clearing for use of various artists’ music during July.|
|31||Paid dividends, $1,250.|
Chart of Accounts
|CHART OF ACCOUNTS|
1. Prepare adjusting journal entries. (Please note that pages 1 and 2 show the transactions that were recorded in Continuing Problem 2 from chapter 2.) Refer to the Chart of Accounts for exact wording of account titles. Note that Chart of Accounts has the following additional accounts: 18 Accumulated Depreciation-Office Equipment; 22 Wages Payable; 57 Insurance Expense; 58 Depreciation Expense.
Journal is set up with the following columns:
Date: Description: Post Ref: Debit Credit
I need page 3 set up only, (adjusting entries), as pages one and two are done.
3. Prepare an adjusted trial balance.
ADJUSTED TRIAL BALANCE
July 31, 2016
|6||Accumulated Depreciation-Office Equipment|
|14||Office Rent Expense|
|15||Equipment Rent Expense|
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.