Continuing Problem Chapter 3 – Instruction #1 The unadjusted trial balance for PS Music as of…
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Question “Continuing Problem Chapter 3 – Instruction #1 The unadjusted trial balance for PS Music as of…”
Continuing Problem Chapter 3 – Instruction #1 The unadjusted trial balance for PS Music as of July 31, 2019 is as follows: PS Music Unadjusted Trial Balance July 31, 2019 Account No. Debit Balances Credit Balances Cash 9,945 2,750 Accounts Receivable Supplies 1,020 2,700 7,500 8,350 7,200 9,000 Prepaid Insurance Office Equipment Accounts Payable Unearned Revenue Peyton Smith, Capital Peyton Smith, Drawing Fees Earned Wages Expense Office Rent Expense Equipment Rent Expense Utilities Expense 16,200 2,800 2,550 1,375 1,215
Calculator Print Item Music Expense 54 3,610 Advertising Expense 1,500 Supplies Expense 180 Miscellaneous Expense 1,855 40,750 40,750 Based on those balances and the additional data below, prepare adjusting Journal entries include Posting References, using the account numbers in your spreadsheet. You will need the following additional accounts: Account Account Name Accumulated Depreciation Office Equipment Wages Payable Insurance Expense Depreciation Expense The data needed to determine adjustments for the two-month period ending July 31, 2019, are as follows: hours per July 31. During July, PS Music provided guest disc jockeys for KMD for a total of 115 hours. The contract requires PS Music to provide a guest disc jockey for month for a monthly fee of $3,600, which PS Music has ready received payment for Any t onal hours beyond so will be led to a $40 per hour Post. Ref. Debit Account Credit July 31: Supplies on hand at July 31, 275
July 31: Supplies on hand at July 31, $275. Post, Ref. Debit Credit < July 31: The balance of the prepaid Insurance account relates to the following July 1, 2019 transaction: Paid a premium of $2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period.” Post. Ref. Debit Credit July 31: Depreciation of the office equipment is $50. Account Post. Ref. Debit Credit
Account Post. Ref. Debit Credit July 31: The balance of the unearned revenue account relates to the contract between PS Music and KXMD, described in the July 3, 2019 transaction, which included the following: “On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600. In accordance with the contract, Peyton received $7,200 from KXMD as an advance payment for the first two months. Account Post. Ref. Debit Credit July 311 Accrued wages as of July 31, 2019, were $140. Account Post. Ref. Debit Credit
Answer
Date | Account title | Debit | Credit |
July 31 | |||
1 | Receivables | 1400 | |
Earned fees | 1400 | ||
[Being amount due to additional hours beyond 80: (115-8=35*40). | |||
2 | supplies expense | 745 | |
Supplies | 745 | ||
[Being supplies used:1020 unadjusted balanced-275 at the end] | |||
3 | Insurance costs | 225 | |
Prepaid insurance | 225 | ||
[Insurance expired one month ago:2700*1/12] | |||
4 | Depreciation expense | 50 | |
Accumulated depreciation-office equipment | 50 | ||
5 | Unearned revenue | 3600 | |
Earned fees | 3600 | ||
6 | Wage expense | 140 | |
wages payable | 140 |
Conclusion
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