Financial and Managerial Accounting: Chapter 3 Continuing Problem -The unadjusted trial balance that

Financial and Managerial Accounting
Chapter 3 Continuing Problem
The unadjusted trial balance that you prepared for PS Music at the end of Chapter 2 should appear as shown on below.
PS Music
Adjusted Trial Balance
July 31, 2012
Debit Credit
Cash 10,510
Accounts Receivable 3,150
Supplies 1,250
Prepaid Insurance 2,700
Office Equipment 6,000
Accounts Payable 7,080
Unearned Revenue 7,200
Pat Sharpe, Capital 9,000
Pat Sharpe, Drawing 2,000
Fees Earned 16,750
Music Expense 3,610
Wages Expense 2800
Office Rent Expense 2,550
Advertising Expense 1,450
Equipment Rent Expense 1,300
Utilities Expense 1,060
Supplies Expense 180
Miscellaneous Expense 1,470
$40,030 $40,030

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.

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.
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