The unadjusted trial balance of Seong-Jin Music Studio at December 31, 2025, and the data needed for the adjustments follow.

Adjustment data at December 31 follow: 

a. As of December 31, Seong-Jin Music Studio had $700 of Prepaid Insurance remaining. 

b. At the end of the month, Seong-Jin Music Studio had $600 of supplies remaining. 

c. Depreciation on the building is $1,600. 

d. Seong-Jin Music Studio pays its employees weekly on Friday. Its employees earn $2,000 for a five-day workweek. December 31 falls on Wednesday this year. 

e. On November 20, Seong-Jin Music Studio contracted to perform services for a client, receiving $2,400 in advance. Seong-Jin Music Studio recorded this receipt of cash as Unearned Revenue. 

As of December 31, Seong-Jin Music Studio has $1,400 still unearned.  

Requirements 

1. Journalize the adjusting entries on December 31. 

2. Using the unadjusted trial balance, open the accounts (use a four-column ledger) with the unadjusted balances. Post the adjusting entries to the ledger accounts. 

3. Prepare the adjusted trial balance. 

4. Assuming the adjusted trial balance has total debits equal to total credits, does this mean that the adjusting entries have been recorded correctly? Explain.

Transcribed Image Text:

SEONG-JIN MUSIC STUDIO Unadjusted Trial Balance December 31, 2025 Account Title Cash Accounts Receivable Prepaid Insurance Supplies Building Accumulated Depreciation-Building Accounts Payable Salaries Payable Unearned Revenue Common Stock Dividends Service Revenue Salaries Expense Insurance Expense Depreciation Expense-Building Advertising Expense Supplies Expense Total Balance Debit $ 12,100 14,300 2,300 1,100 411,000 2,860 2,700 830 Credit $ 312,500 1,950 2,400 114,740 15,600 $ 447,190 $ 447,190