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 in 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 in 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, 20Y9 Debit Credit Balances Account No. Balances 11 9,945 Cash. Accounts Receivable. 12 2,750 14 1,020 Supplies.. Prepaid Insurance. Office Equipment.. Accounts Payable. 15 2,700 17 7,500 21 8,350 7,200 9,000 23 Unearned Revenue.. 31 Peyton Smith, Capital. Peyton Smith, Drawing. Fees Earned.. 32 1,750 41 16,200 50 2,800 Wages Expense... Office Rent Expense.. Equipment Rent Expense. Utilities Expense. Music Expense... Advertising Expense.. Supplies Expense.. Miscellaneous Expense. 51 2,550 52 1,375 53 1,215 54 3,610 55 1,500 56 180 59 1,855 40,750 40,750