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The unadjusted trial balance for PS Music as of July 31, 20Y5 is as follows:
PS Music
Unadjusted Trial Balance
July 31, 20Y5
Account No. Debit Balances Credit Balances
Cash 11 9,945
Accounts Receivable 12 2,750
Supplies 14 1,020
Prepaid Insurance 15 2,700
Office Equipment 17 7,500
Accounts Payable 21 8,350
Unearned Revenue 23 7,200
Common Stock 31 9,000
Dividends 33 1,750
Fees Earned 41 16,200
Wages Expense 50 2,800
Office Rent Expense 51 2,550
Equipment Rent Expense 52 1,375
Utilities Expense 53 1,215
Music Expense 54 3,610
Advertising Expense 55 1,500
Supplies Expense 56 180
Miscellaneous Expense 59 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
18 Accumulated Depreciation-Office Equipment
22 Wages Payable
57 Insurance Expense
58 Depreciation Expense
The data needed to determine adjustments for the two-month period ending July 31, 2019, are as follows:
July 31: During July, PS Music provided guest disc jockeys for KXMD for a total of 115 hours. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600, which PS Music has already received payment for. Any additional hours beyond 80 will be billed to KXMD at $40 per hour.
Account Post. Ref. Debit Credit
July 31: Supplies on hand at July 31, $275.
Account 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."
Account Post. Ref. Debit Credit
July 31: Depreciation of the office equipment is $50.
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 31: Accrued wages as of July 31, 2019, were $140.
Account Post. Ref. Debit Credit

Respuesta :

anthougo

Answer:

PS Music

Adjusting Journal Entries:

Debit Accounts receivable 12  $1,400

Credit Fees Earned 41 $1,400

To record extra services rendered. (115 - 80) * $40

Debit Supplies Expense 56 $745

Credit Supplies 14 $745

To record supplies used.

Debit Insurance Expense 57  $225

Credit Prepaid Insurance 15 $225

To record expired insurance expense ($2,700 * 1/12).

Debit Depreciation Expense -Office Equipment 58 $50

Credit Accumulated Depreciation-Office Equipment 18 $50

To record depreciation expense for the month.

Debit Unearned Revenue 23 $3,600

Credit Fees Earned 41 $3,600

To record fees earned.

Debit Wages Expense 50 $140

Credit Wages Payable 22  $140

To record accrued wages.

Explanation:

a) Data and Calculations:

PS Music

Unadjusted Trial Balance

July 31, 20Y5

Account No.                          Debit Balances Credit Balances

Cash 11                                            9,945

Accounts Receivable 12                 2,750

Supplies 14                                      1,020

Prepaid Insurance 15                     2,700

Office Equipment 17                      7,500

Accounts Payable 21                                      8,350

Unearned Revenue 23                                  7,200

Common Stock 31                                          9,000

Dividends 33                                  1,750

Fees Earned 41                                            16,200

Wages Expense 50                      2,800

Office Rent Expense 51               2,550

Equipment Rent Expense 52       1,375

Utilities Expense 53                      1,215

Music Expense 54                        3,610

Advertising Expense 55              1,500

Supplies Expense 56                      180

Miscellaneous Expense 59         1,855

                                                  40,750      40,750

Analysis of Adjustments:

Accounts receivable 12   $1,400 Fees Earned 41 $1,400 (115 - 80) * $40

Supplies Expense 56   $745 Supplies 14 $745

Insurance Expense 57  $225 Prepaid Insurance 15 $225 ($2,700 * 1/12)

Depreciation Expense -Office Equipment 58 $50 Accumulated Depreciation-Office Equipment 18 $50

Unearned Revenue 23 $3,600 Fees Earned 41 $3,600

Wages Expense 50 $140 Wages Payable 22  $140

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