The unadjusted trial balance that you prepared for PS Music at the end of Chapter 2 should appear as shown on below.

The data needed to determine adjustments for the two-month period ending July 31, 2012, are as follows:

a. During July, PS Music provided guest disc jockeys for WHBD for a total of 120 hours. For information on the amount of the accrued revenue to be billed to WHBD, see the contract described in the July 3, 2012, transaction at the end of Chapter 2.

b. Supplies on hand at July 31, $400.

c. The balance of the prepaid insurance account relates to the July 1, 2012, transaction at the end of Chapter 2.

d. Depreciation of the office equipment is $75.

e. The balance of the unearned revenue account relates to the contract between PS Music and WHBD, described in the July 3, 2012, transaction at the end of Chapter 2.

f. Accrued wages as of July 31, 2012, were $170.

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 trialbalance.

Transcribed Image Text:

PS Musi Unadjusted Trial Balance July 31, 2012 Debit Balances Credit Balances .10,510 3,150 Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accounts Payable Unearned Revenue. Pat Sharpe, Capital . ,250 ....6,000 7,080 7,200 9,000 16,750 Equipment Rent Expense Utilities Expense .. Supplies Expense 1300 ,060 180 . . .-. 40,030 40,030