Dance Equipment owned by the business: original purchase price was $48,000, estimated useful life was 9 years, and estimated residual value was $7,500 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 $4,200 were provided during the month of June for Thompson Productions 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 14. Wages incurred after that day (from June 15 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 ZNZ Bank for the bank loan is $990.

Provided $2,650 worth of dance lessons during the month of June in relation to the cash received in advance from Carland Creative Media on June 10.

Office supplies totaling $1,085 are still on hand at June 30.

$2,000 worth of prepaid insurance 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.

G Account: Accounts Receivable Account No. 110 Account: Office Supplies Account No. 130 Account: Prepaid Insurance Account No. 140 Account: Accum Depn: Dance Equipment Account No. 161 Account: Wages Payable Account No. 220 Account: Telephone Payable Account No. 221 Account: Interest Payable Account No. 225 Account: Unearned Revenue Account No. 230 Account: Revenues Account No. 400 Account: Wages Expense Account No. 516 Account: Telephone Expense Account No. 541 Account: Insurance Expense Account No. 543 Account: Office Supplies Expense Account No. 544 Account: Depn Expense: Dance Equipment Account No. 560 Account: Interest Expense Account No. 571