Chapter 4 problem 4.5 B

Marvelous Music provides music lessons to student musicians. Some students pay in advance for lesson; others are billed after lessons have been provided. Advance payments are credited to an account entitled Unearned lesson revenue. Adjusting entries are performed on a monthly basis. An unadjusted trail balance dated December 31,2015,follows (Bears in mind that ajusting entries jave already been made for the first 11 months of 2015, but not for december.)

Marvelous Music

Unadjusted trial balance

December 31,2015

Cash.....................................................................................................$15,800

Account receivable..................................................................................$2,100

unexpired insurance.................................................................................$3,200

prepaid rent..............................................................................................$6,000

Sheet music Supplies................................................................................$450

Music equipment.......................................................................................$180,000

Accumulated depreciation; music equipment.....................................................................$72,000

etc....