The unadjusted trial balance that you prepared for Music Depot
The unadjusted trial balance that you prepared for Music Depot at the end of Chapter 2, on pages 94 and 95, should appear as follows:
The data needed to determine adjustments for the two-month period ended December 31, 2015, are as follows:
a. During December, Music Depot provided guest disc jockeys for CHBD for a total of 120 hours. For information on the amount of the accrued revenue to be billed to CHBD, see the contract described in the December 3, 2015, on page 94.
b. Supplies on hand at December 31, 2015, $400.
c. The balance of the prepaid insurance account related to the December 1, 2015, transaction on page 94 in Chapter 2.
d. Depreciation of the office equipment, $75.
e. The balance of the unearned revenue account relates to the contract between Music Depot and CHBD described in the December 3, 2015, transaction on page 94.
f. Accrued wages for a new assistant who started work three days before the year-end, $170.
1. Prepare adjusting journal entries. You will need the following additional accounts:
1080 Accumulated Depreciation—Office Equipment
2030 Wages Payable
5060 Supplies Expense
5080 Depreciation Expense
5090 Insurance Expense
5100 Wages Expense
2. Post the adjusting entries, inserting balances in the accounts affected.
3. Prepare an adjusted trial balance.
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