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 $48,000, estimated useful life was 7 years, and estimated residual value was $7,800 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 $4,000 were provided during the month of June for Brashs World Records but not yet invoiced. The estimated telephone bill payable as at the end of June is $120. 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 13. Wages incurred after that day (from June 14 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 ZNZ Bank for the bank loan is $930. Provided $1,980 worth of music lessons during the month of June in relation to the cash received in advance from Council Records on June 11. Office supplies totaling $1,332 are still on hand at June 30. $2,800 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. Show All General Journal General Ledger (Q=501.generalJournalAdjEntries) GENERAL JOURNAL Date Account and Explanation Post Ref. Debit Credit Jun 30 (select) (select) Jun 30 select) (select) (select) Jun 30 (select) (select) Jun 30 (select) Jun 30 (select) (select) Jun 30 (select) (select) (select) Jun (select) Jun 30 (select) (select) GENERAL LEDGER Account: Accounts Receivable Account No. 110 Date Ref. Credit Debit 6,200 GJ Description 10 Service revenue 15 Collection of accounts receivable 29 Service revenue 30 Balance 6,200 DR 2,500 DR 10,400 DR Jun Jun Jun Jun GJ 3,700 GJ 7,900 Jun 30 Jun 30 Adjusted Balance 30 I pool Account: Office Supplies Account No. 130 Date Ref. Debit Credit Balance Description 5 purchase of office supplies Jun GJ GJ 3,700 3,700 DR Jun Jun Jun Jun 30 Adjusted Balance Account: Prepaid Rent Account No. 140 Date Ref. Debit Credit Balance Description 1 Prepaid rent Jun GJ 8,400 8,400 DR 30 Jun 000 Jun Jun 30 Adjusted Balance Account: Accum Depn: Music Equipment Account No. 161 Date Description Ref. Debit Credit Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance Account: Wages Payable Account No. 220 Date Description Ref. Debit Credit Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance Account: Telephone Payable Account No. 221 Date Description Ref. Debit Credit Balance Jun 30 30 Jun Jun 30 Adjusted Balance Account: Interest Payable Account No. 225 Date Description Ref. Debit Credit Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance Account: Unearned Revenue Account No. 230 Date Description Ref. Debit Balance Credit 3,300 Jun 11 Revenue received in advance GJ 3,300 CR Jun 30 Jun Jun 30 Jun 30 Adjusted Balance Account: Revenues Account No. 400 Date Description Ref. Debit Credit Jun GJ Jun GJ 5 Received cash for services 10 Services provided on credit Received cash for services 29 Services provided on credit 4,400 6,200 4,300 7,900 Balance 4,400 CR 10,600 CR 14,900 CR 22,800 CR Jun Jun Jun Jun Jun 30 Adjusted Balance Account: Wages Expense Account No. 516 Description Ref. Credit Date Jun Debit 6,400 Balance 6,400 DR 14 Paid staff wages GJ Jun Jun 30 000 Jun | 30 Jun 30 Adjusted Balance Account: Telephone Expense Account No. 541 Debit Credit Date Jun Description 5 Paid telephone expense Ref. GJ Balance 150 DR 150 OOOO Jun 30 Adjusted Balance Account: Rent Expense Account No. 543 Date Description Debit Credit Balance Jun 30 OOO Jun 30 Adjusted Balance Account: Office Supplies Expense Account No. 544 Date Description Ref. Debit Credit Balance Jun 30 | 30 Adjusted Balance Account: Depn Expense: Music Equipment Account No. 560 Date Description Ref. Debit Credit Balance Jun 30 OOOO Jun 30 Adjusted Balance Account: Rent Expense Account No. 543 Date Description Ref. Debit Credit Balance Jun 30 Jun 30 30 Jun Jun 30 Adjusted Balance Account: Office Supplies Expense Account No. 544 Date Description Ref. Debit Credit Balance Jun 30 A Jun UBON Jun Jun 30 Adjusted Balance Account: Depn Expense: Music Equipment Account No. 560 Date Description Ref. Debit Credit Balance Jun 30 U Jun 30 Jun 30 Jun 30 Adjusted Balance Account: Interest Expense Account No. 571 Date Description Ref. Debit Credit Balance Jun 30 Jun Jun UUUI Jun 30 Adjusted Balance