The unadjusted trial balance that you prepared for Dancin Music at the end of Chapter 2 should appear as follows:
|
Dancin Music Unadjusted Trial Balance May 31, 2008 |
||
|
|
Debit |
Credit |
|
|
Balances |
Balances |
|
Cash |
12,085 |
|
|
Accounts Receivable |
2,850 |
|
|
Supplies |
920 |
|
|
Prepaid Insurance |
3,360 |
|
|
Office Equipment |
5,000 |
|
|
Accounts Payable |
|
5,750 |
|
Unearned Revenue |
|
4,800 |
|
Kris Payne, Capital |
|
12,500 |
|
Kris Payne, Drawing |
1,300 |
|
|
Fees Earned |
|
14,750 |
|
Wages Expense |
2,400 |
|
|
Office Rent Expense |
2,600 |
|
|
Equipment Rent Expense |
1,300 |
|
|
Utilities Expense |
910 |
|
|
Music Expense |
2,565 |
|
|
Advertising Expense |
1,730 |
|
|
Supplies Expense |
180 |
|
|
Miscellaneous Expense |
600 |
|
|
|
37,800 |
37,800 |
The data needed to determine adjustments for the two month period ending May 31, 2008, are as follows:
a. During May, Dancin Music provided guest disc jockeys for KPRG for a total of 115 hours. For information on the amount of the accrued revenue to be billed to KPRG, see the contract described in the May 3, 2008, transaction at the end of Chapter 2.
b. Supplies on hand at May 31, $160.
c. The balance of the prepaid insurance account relates to the May 1, 2008, transaction at the end of Chapter 2.
d. Depreciation of the office equipment is $100.
e. The balance of the unearned revenue account relates to the contract between Dancin Music and KPRG, described in the May 3, 2008, transaction at the end of Chapter 2.
f. Accrued wages as of May 31, 2008, were $200.
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.