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The unadjusted trial balance that you prepared for PS Music at the end of Chapter 2 should appear as follows: 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. For information on the amount of the accrued revenue to be billed to KXMD, see the contract described in the July 3 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 transaction in 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 transaction in Chapter 2. 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.

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 3, Problem 1COP
Textbook Problem

The unadjusted trial balance that you prepared for PS Music at the end of Chapter 2 should appear as follows:

Chapter 3, Problem 1COP, The unadjusted trial balance that you prepared for PS Music at the end of Chapter 2 should appear as

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. For information on the amount of the accrued revenue to be billed to KXMD, see the contract described in the July 3 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 transaction in 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 transaction in Chapter 2.
  • 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.

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Chapter 3 Solutions

Accounting
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