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: Music Equipment owned by the business: original purchase price was $47,000, estimated useful life was 10 years, and estimated residual value was $8,400 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 music lessons totalling $3,300 were provided during the month of June for Carrie O'Key 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 15. Wages incurred after that day (from June 16 to June 30 inclusive) are estimated to have been $600 per day. Interest expense incurred during the month of June but not yet paid to EastPac Bank for the bank loan is $1,050. Provided $4,410 worth of music lessons during the month of June in relation to the cash received in advance from The Wikie Wah Hut on June 10. Office supplies totaling $1,102 are still on hand at June 30. $3,360 of worth prepaid rent expired during the month of June. Instructions for adjusting entries 1) Record the end of month adjusting entries in the general journal. 2) Post the adjusting entries from the general journal to the general ledger accounts. 3) 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. Back-On-Track functionality Please note that any answers from previous pages carried through onto this page (either on the page or in a popup information page) have been reset, if necessary, to the correct answers. Your particular answers from previous pages are no longer shown. Remember: Enter all answers to the nearest whole dollar. You are also required to apply the journal and ledger instructions provided in previous stages of the practice set. Before pressing the Submit answers button, we recommend that you click the Show All tab and check that all relevant accounting records have been completed.