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 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 transaction at the end of 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.

Transcribed Image Text:

PS Music Unadjusted Trial Balance July 31, 20Y5 Account Debit Credit No. Balances Balances Cash.... 11 9,945 Accounts Receivable.. 12 2,750 1,020 2,700 7,500 Supplies...... Prepaid Insurance Office Equipment Accounts Payable Unearned Revenue Common Stock Dividends 14 15 17 21 8,350 7,200 9,000 23 31 33 1,750 Fees Earned. 41 16,200 Wages Expense Office Rent Expense Equipment Rent Expense Utilities Expense Music Expense. Advertising Expense.. Supplies Expense... Miscellaneous Expense. 50 2,800 2,550 51 52 1,375 1,215 3,610 1,500 53 ... 54 55 56 180 1,855 40,750 59 40,750