=+140 Chapter 3 The Adjusting Process Continuing Problem The unadjusted trial balance that you prepared for Music Depot at the end of Chapter 2 should appear as follows:

Music Depot Unadjusted Trial Balance July 31, 2010 Debit Credit Balances Balances Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,780 Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,150 Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 850 Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,700 Office Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,680 Unearned Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,200 Lee Chang, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,500 Lee Chang, Drawing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,700 Fees Earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,300 Wages Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400 Office Rent Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,750 Equipment Rent Expense . . . . . . . . . . . . . . . . . . . . . . . . . . 1,100 Utilities Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 860 Music Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,810 Advertising Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,600 Supplies Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 Miscellaneous Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800 ______ ______ 38,680 38,680 ______ ______ ______ ______ The data needed to determine adjustments for the two-month period ending July 31, 2010, are as follows: