Adjusting entries information

Using the following information, you will record end of month adjustments:

Dance Equipment owned by the business: original purchase price was $56,000, estimated useful life was 10 years, and estimated residual value was $8,900 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year.

A number of dance lessons totalling $3,200 were provided during the month of June for Starmax Media but not yet invoiced.

The estimated telephone bill payable as at the end of June is $90.

Instructors work every single day during the week including weekends and are paid on a periodic basis. Wages were last paid up to and including June 16. Wages incurred after that day (from June 17 to June 30 inclusive) are estimated to have been $580 per day.

Interest expense incurred during the month of June but not yet paid to BitiBank for the bank loan is $990.

Provided $4,020 worth of dance lessons during the month of June in relation to the cash received in advance from LMP Media on June 9.

Office supplies totaling $1,170 are still on hand at June 30.

$3,520 of worth prepaid rent expired during the month of June.

General ledger instructions:

Some ledger accounts may have blank rows left at the end of the web page.

Each line of a transaction entered into the general journal must be posted as a single line to the corresponding general ledger account. When posting, you must not combine two or more entries in the general journal and post them as a single line of entry into the general ledger. Instead, you must post each line entered into the general journal separately.

When posting a transaction to a ledger account, under the Description column, please type the description of the transaction directly into the field. The exact wording does not matter for grading purposes. For example, it does not matter in an electricity transaction if you type 'Paid for electricity' or 'Paid electricity bill'.

For each ledger, under the Ref. column, you need to select the correct journal from a list in the drop-down box provided, in order to receive full points.

If the balance of a ledger account is zero you do not need to select a debit or credit from the drop-down box.

Adjusting entries

Now that you have completed the unadjusted trial balance, you are ready to record the end of month adjustments for June.

The purpose of adjusting entries is to ensure that the general ledger account balances reflect the revenues earned and expenses incurred during the accounting period.

Remember that the details of the end of month adjustments for June are as follows:

Dance Equipment owned by the business: original purchase price was $56,000, estimated useful life was 10 years, and estimated residual value was $8,900 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year.

A number of dance lessons totalling $3,200 were provided during the month of June for Starmax Media but not yet invoiced.

The estimated telephone bill payable as at the end of June is $90.

Instructors work every single day during the week including weekends and are paid on a periodic basis. Wages were last paid up to and including June 16. Wages incurred after that day (from June 17 to June 30 inclusive) are estimated to have been $580 per day.

Interest expense incurred during the month of June but not yet paid to BitiBank for the bank loan is $990.

Provided $4,020 worth of dance lessons during the month of June in relation to the cash received in advance from LMP Media on June 9.

Office supplies totaling $1,170 are still on hand at June 30.

$3,520 of worth prepaid rent expired during the month of June.

Instructions for adjusting entries

Post the adjusting entries from the general journal to the general ledger accounts. Record the final adjusted balance of each ledger account in the Adjusted Balance row of each ledger, even for ledgers with a balance of zero. Although each ledger already has a running balance, the Adjusted Balance row must still be filled out in order to receive full points.

Enter all answers to the nearest whole dollar.

You are also required to apply the ledger instructions provided

GENERAL JOURNAL Account and Explanation Date Jun 30 Depn Expense: Dance Equipment Select Accum Depn: Dance Equipment select select Jun 30 ccounts Receivable select Revenues Jun 30 Telephone Expense select select Telephone Payable Jun 30 ages Expense select select Wages Payable Jun 30 nterest Expense select select Interest Payable select Jun 30 Unearned Revenue select Revenues Jun 30 office Supplies Expense select select Office Supplies select Jun 30 Rent Expense select Prepaid Rent Post 560 161 110 400 541 221 516 220 571 225 230 400 544 130 543 140 Debit 393 3200 90 8120 990 4020 1830 3520 Credit 393 3200 90 8120 990 4020 1830 3520