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James Harris Enterprises is a small recording studio in Nashville. Rock bands use the studio to produce recordings to distribute to talent agents. New clients

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James Harris Enterprises is a small recording studio in Nashville. Rock bands use the studio to produce recordings to distribute to talent agents. New clients are required to pay in advance for services, while bands with good credit rating are billed at the end of the month. Adjusting entries are performed on a monthly basis but performs closing entries annually on December 31. An unadjusted trial balance dated December 31, 2015, is provided below. (Bear in mind that adjusting entries already have been made for the first eleven months of 2015, but not for December.) Data for adjustments: 1. Billed clients $14,400 in studio revenue for December. 2. Studio supplies used during December amount to $7,800. 3. On August 1, 2015, the studio purchased a six-month insurance policy for $1,500. The entire premium was initially debited to Unexpired Insurance. 4. On November 1, 2015, the studio paid $6,000 rent in advance for November, December, and January (3 months). The entire amount was debited to Prepaid Studio Rent. 5. The useful life of the studio's recording equipment is estimated to be 5 years (or 60 months) The straight-line method of depreciation is used. 6. On May 1, 2015, the studio borrowed $16,000 by signing a 12-month, 7 percent note payable to Bank of America. The entire $16,000 plus 12 months' interest is due in full on April 30, 2016. 7. Records show that $5,600 of cash receipts originally recorded as Uneamed Studio Revenue had been earned as of December 31. 8. Salaries earmed by studio employees that remain unrecorded and unpaid at December 31 amount to $840. Jame Harris Enterprises Unadjusted Trial Balance December 31, 2015 $ 43,170 Cash.... 81,400 Accounts receivable 7,600 Studio supplies... Unexpired insurance. Prepaid studio rent. Recording equipment.. Accumulated depreciation: recording equipment. Notes payable. . Interest payable Income taxes payable.. 500 4,000 90,000 $52,500 16,000 840 3,200 9,600 Unearned studio revenue. 80,000 Capital stock... . Retained earnings. 38,000 107,000 Studio revenue earned. 18,000 Salaries expense 1,200 Supplies expense. 2,680 Insurance expense 16,500 Depreciation expense: recording equipment 21,000 Studio rent expense 840 Interest expense. Utilities expense. 2,350 17,900 $307,140 $307,140 Income taxes expense Instructions: 1) Record the adjusting entries required at December 31", 2015 in General Journal provided below. You may omit explanations Account Titles and Explanation Date Credit Debit 2) Post the entries on the appropriate general ledger accounts. Using the unadjusted trial balance, calculate and show the ending balance for each T-account

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