Account: Miscellaneous Expense Account No. 59 The unadjusted trial balance that you prepared for PS Music at the end of Chapter 2 should appear as follows: Jul. 1 Peyton Smith made an additional investment in PS Music in exchange for common stock by depositing $5,000 in PS Music's checking account. 1 Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, $1,750. 1 Paid a premium of $2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2 Received $1,000 on account. 3 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. Any additional hours beyond 80 will be billed to KXMD at $40 per hour. In accordance with the contract, Peyton received $7,200 from KXMD as an advance Journal ACCOUNTING EQUATION Account No. 14 Account No. 12 Account No. 58 Journal \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline 12 & 27 & Utilities Expense & 53 & 915.00 & & & \\ \hline 13 & & Cash & 11 & & 915.00 & & \\ \hline 14 & 28 & Wages Expense & 50 & 1,200.00 & & & \\ \hline 15 & & Cash & 11 & & 1,200.00 & & \\ \hline 16 & 29 & Miscellaneous Expense & 59 & 540.00 & & & \\ \hline 17 & & Cash & 11 & & 540.00 & & \\ \hline 18 & 30 & Cash & 11 & 500.00 & & & \\ \hline 19 & & Accounts Receivable & 12 & 1,000.00 & & & \\ \hline 20 & & Fees Earned & 41 & & 1,500.00 & & \\ \hline 21 & 31 & Cash & 11 & 3,000.00 & & & \\ \hline 22 & & Fees Earned & 41 & & 3,000.00 & & \\ \hline 23 & 31 & Music Expense & 54 & 1,400.00 & & & \\ \hline 24 & & Cash & 11 & & 1,400.00 & & \\ \hline 25 & 31 & Dividends & 33 & 1,250.00 & & & \\ \hline 26 & & Cash & 11 & & 1,250.00 & & \\ \hline \end{tabular} 3 Paid $250 on account. 4 Paid an attorney $900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5 Purchased office equipment on account from Office Mart, $7,500. 8 Paid for a newspaper advertisement, \$200. 11 Received $1,000 for serving as a disc jockey for a party. 13 Paid $700 to a local audio electronics store for rental of digital recording equipment. 14 Paid wages of $1,200 to receptionist and part-time assistant. 16 Received $2,000 for serving as a disc jockey for a wedding reception. 18 Purchased supplies on account, $850. 21 Paid $620 to Upload Music for use of its current music demos in making various music sets. 22 Paid $800 to a local radio station to advertise the services of PS Music twice daily for the remainder of Account No. 57 Chart of Accounts 18 Accumulated Depreciation-Office Equipment LIABILITIES 21 Accounts Payable 22 Wages Payable 23 Unearned Revenue EQUITY 52 Equipment Rent Expense 53 Utilities Expense 54 Music Expense 55 Advertising Expense 56 Supplies Expense 57 Insurance Expense 58 Depreciation Expense 59 Miscellaneous Expense 31 Common Stock 33 Dividends \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{9}{|c|}{ Journal } \\ \hline 3 & 1 & Office Rent Expense & 51 & 1,750.00 & & & & \\ \hline 4 & & Cash & 11 & & 1,750.00 & & & \\ \hline 5 & 1 & Prepaid Insurance & 15 & 2,700.00 & & & & \\ \hline 6 & & Cash & 11 & & 2,700.00 & & & \\ \hline 7 & 2 & Cash & 11 & 1,000.00 & & & & \\ \hline 8 & & Accounts Receivable & 12 & & 1,000.00 & & & \\ \hline 9 & 3 & Cash & 11 & 7,200.00 & & & & \\ \hline 10 & & Unearned Revenue & 23 & & 7,200.00 & & & \\ \hline 11 & 3 & Accounts Payable & 21 & 250.00 & & & & \\ \hline 12 & & Cash & 11 & & 250.00 & & & \\ \hline 13 & 4 & Miscellaneous Expense & 59 & 900.00 & & & & \\ \hline 14 & & Cash & 11 & & 900.00 & & & \\ \hline 15 & 5 & Office Equipment & 17 & 7,500.00 & & & & \\ \hline 16 & & Accounts Payable & 21 & & 7,500.00 & & & \\ \hline 17 & 8 & Advertising Expense & 55 & 200.00 & & & & \\ \hline \end{tabular} Account No. 55 Chart of Accounts Account: Dividends Account No. 33 Account: Office Rent Expense Account No. 51 Account: Equipment Rent Expense Account No. 52 \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline & \multirow{2}{*}{ DATE } & \multirow{2}{*}{ ITEM } & \multirow{2}{*}{ POST. REF. } & \multirow{2}{*}{ DEBIT } & \multirow{2}{*}{ CREDIT } & \multicolumn{2}{|c|}{ BALANCE } \\ \hline & & & & & & DEBIT & CREDIT \\ \hline 1 & Jul. 1 & Balance & & & & 675.00 & \\ \hline 2 & 13 & & 1 & 700.00 & & 1,375.00 & \\ \hline \end{tabular} Account No. 54 Account: Office Equipment Account No. 17 1. Prepare adjusting journal entries on page 3 of the journal. (Please note that pages 1 and 2 show the transactions that were recorded in Continuing Problem 2 from chapter 2.) Refer to the Chart of Accounts for exact wording of account titles. Note that Chart of Accounts has 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. Do not enter anything in the Item column. Indicate a zero balance by inserting a 0 (zero) in either of the Balance columns opposite the adjusting entry. 3. Prepare an adjusted trial balance. Account: Supplies Expense Account No. 56 \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline & \multirow{2}{*}{ DATE } & \multirow{2}{*}{ ITEM } & \multirow{2}{*}{ POST. REF. } & \multirow{2}{*}{ DEBIT } & \multirow{2}{*}{ CREDIT } & \multicolumn{2}{|c|}{ BALANCE } \\ \hline & & & & & & DEBIT & CREDIT \\ \hline 1 & Jul.1 & Balance & & & & 180.00 & \\ \hline 2 & & & & & & & \\ \hline \end{tabular} 1. Prepare adjusting journal entries. (Please note that pages 1 and 2 show the transactions that were recorded in Continuing Problem 2 from chapter 2.) Refer to the Chart of Accol for exact wording of account titles. Note that Chart of Accounts has the following additional accounts: 18 Accumulated Depreciation-Office Equipment; 22 Wages Payable; 57 Insur: Expense; 58 Depreciation Expense. Account No. 53 Account No. 22 Account No. 41 Ledger \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline & unt: Prepa & & & & & \multicolumn{2}{|c|}{ Account No. 15} \\ \hline & \multirow{2}{*}{ DATE } & \multirow{2}{*}{ ITEM } & \multirow{2}{*}{ POST. REF. } & \multirow{2}{*}{ DEBIT } & \multirow{2}{*}{ CREDIT } & \multicolumn{2}{|c|}{ BALANCE } \\ \hline & & & & & & DEBIT & CREDIT \\ \hline 1 & Jul.1 & & 1 & 2,700.00 & & 2,700.00 & \\ \hline 2 & & & & & & & \\ \hline \end{tabular} 23 Served as disc jockey for a party for \$2,500. Received \$750, with the remainder due August 4, 2018. 27 Paid electric bill, \$915. 28 Paid wages of $1,200 to receptionist and part-time assistant. 29 Paid miscellaneous expenses, $540. 30 Served as a disc jockey for a charity ball for $1,500. Received $500, with the remainder due on August 9, 2018. 31 Received $3,000 for serving as a disc jockey for a party. 31 Paid $1,400 royalties (music expense) to National Music Clearing for use of various artists' music during July. 31 Paid dividends, $1,250. \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline 17 & 8 & Advertising Expense & 55 & 200.00 & & & \\ \hline 18 & & Cash & 11 & & 200.00 & & \\ \hline 19 & 11 & Cash & 11 & 1,000.00 & & & \\ \hline 20 & & Fees Earned & 41 & & 1,000.00 & & \\ \hline 21 & 13 & Equipment Rent Expense & 52 & 700.00 & & & \\ \hline 22 & & Cash & 11 & & 700.00 & & \\ \hline 23 & 14 & Wages Expense & 50 & 1,200.00 & & & \\ \hline 24 & & Cash & 11 & & 1,200.00 & & \\ \hline \end{tabular} 3. Prepare an adjusted trial balance. Account: Unearned Revenue Account No. 23 \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline & \multirow{2}{*}{ DATE } & \multirow{2}{*}{ ITEM } & \multirow{2}{*}{ POST. REF. } & \multirow{2}{*}{ DEBIT } & \multirow{2}{*}{ CREDIT } & \multicolumn{2}{|c|}{ BALANCE } \\ \hline & & & & & & DEBIT & CREDIT \\ \hline 1 & Jul. 3 & & 1 & & 7,200.00 & & 7,200.00 \\ \hline 2 & & & & & & & \\ \hline \end{tabular} Adjusted Trial Balance \begin{tabular}{|l|l|l|l|} \hline 10 & Common Stock & \\ \hline 11 & Dividends & \\ \hline 12 & Fees Earned & \\ \hline 13 & Wages Expense & \\ \hline 14 & Office Rent Expense & \\ \hline 15 & Equipment Rent Expense & \\ \hline 16 & Utilities Expense & \\ \hline 17 & Music Expense & \\ \hline 18 & Advertising Expense & \\ \hline 19 & Supplies Expense & \\ \hline 20 & Insurance Expense & \\ \hline 21 & Depreciation Expense & \\ \hline 22 & Miscellaneous Expense & \\ \hline 23 & Totals & \\ \hline & \\ \hline \end{tabular} Account: Common Stock Account No. 31