Melody Lane Co provides music lessons to many clients across the city. The following information is available to be used in recording annual adjusting entries at the company's September 30, 2021, year end: 1 2 3 4. 5 6 On October 1, 2020, the company had a balance of $2,080 in its supplies account. Additional supplies were purchased during the year totalling $1,700. The supplies inventory on September 30, 2021, amounts to $810. On November 1, 2020, Melody Lane purchased a one-year insurance policy for $3,200, On January 2, 2021, a client paid $1,800 for six months of lessons starting April 2, 2021 On February 1, 2021, Melody Lane purchased a grand piano (to be used in music lessons) for $24,000. The piano's estimated useful life is 12 years. On May 1, 2021, Melody Lane borrowed $25,000 from the bank and signed a 10-month, 4% note payable. Interest and principal are to be paid at maturity On August 1, 2021, Melody Lane signed a contract with a neighbourhood school to provide weekly piano lessons to some of its students for a fee of $2,000 per month. The contract called for lessons to start on September 1, 2021. The school has not yet been sent an invoice for the month of September On August 15, 2021, the company paid $9,000 to Pinnacle Holdings to rent additional studio space for nine months starting September 1 Melody Lane recorded the full payment as Prepaid Rent Melody Lane's instructors have earned salaries of $3,500 for the last week of September 2021. This amount will be paid to the instructors on the next payday October 6, 2021 Music lessons were provided to a local church group for $1,500 on September 30, 2021 Melody Lane has not yet invoiced the group or recorded the transaction in early October 2021. Melody Lane received an invoice for $895 from the utility company for September utilities. The amount has not yet been recorded or paid. 7 8 9 10 Prepare the adjusting journal entries (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to the nearest whole dollar e.c.5.275. If no entry is required, select "No Entry for the repare the adjusting journal entries. (Credit account titles are automatically indented when amount is entered. Do not ndent manually. Round answers to the nearest whole dollar, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Debit Credit No. Date Account Titles and Explanation Sept 30 1 Sept 30 3 Sept 30 4 Sept 30 5 Sept 30 Sept 4 Sept 30 5 Sept. 30 6 Sept. 30 7 Sept. 30 8 Sept 30 9 Sept 30 10 Sept 30 A review of the ledger of Greenberg Company at December 31, 2021, produces the following important data for the preparation of annual adjusting e 1 Prepaid Advertising, December 31, 2021. unadjusted balance $15,600. This balance consists of payments on two advertising contracts for advertising in two trade magazines. The terms of the contracts are as follows: Contract A650 First Month May 2021 October 2021 Amount $5.000 10.600 $15,600 Number of Magazine Issues 12 24 B974 2 Vehicles December 31, 2021, balance $70,000 The company owns two vehicles used for delivery purposes. The first purchased for $30,000 January 2 2019. has an estimated seven-year useful life. The second purchased for $40,000 on June 1, 2020 has an estimated eight-year use life 4 Notes Payable December 31, 2021. balance $85,000. This consists of an eight-month, 6.5 note, dated August 1 Interest is payable at maturity Salaries Payable December 31, 2021 unadjusted balance $0. There are nine salaried employees Salaries are paid every following Monday for a day workweek (Monday-Saturday Six employees receive a salary of $750 per week and three employees earn $600 per week. December 31, 20 is a Friday Unearned Revenue December 31 2021 unadjusted balance $270,000 Greenberg began renting office space to tenants in its new building on November 1 An December 31. Greenberg had the following rental contracts that were paid in full for the entire term of the lease Number of Tenants Rental Term Nov 1.2021 to Apr 30, 2022 Dec 12021 to May 31 2022 Monthly Rent 54.000 7000 Total Rent Paid $144,000 126.000 $270.000 Prepare the adjusting entries at December 31 2021 Credit account titles are automatically 7. Sept. 30 8 . Sept 30 9 Sept 30 10 Sept 30 $270,000 Prepare the adjusting entries at December 31, 2021 (Credit account titles are automatically indented when amount is entered. Do not indont manually. Round answers to the nearest whole dollar, e.g. 5,275. I no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. No. Date Account Titles and Explanation Dec 31 Debit Credit 1 2 Dec 31 (To record depreciation expense for the first vehicle) Dec (To record depreciation expense for the second vehicle.) 3 31 DAC Dec (To record depreciation expense for the first vehicle) Dec 31 to record depreciation expense for the second vehicle.) Det 3. 3 4 Dec 3 Dec For item 2, calculate the accumulated depreciation and carrying amount of each vehicle on December 31, 2021 (Round answers to the nearest who dollar, e.g. 5,275.) Accumulated depreciation Carrying amount Vehicle 1 $ S Vehicle 2 S S e Textbook and Media List of Accounts On August 31, 2021, the account balances of Pitre Equipment Repair were as follows: Credit PITRE EQUIPMENT REPAIR Trial Balance August 31, 2021 Debit Cash $1,880 Accounts Receivable 3,720 Supplies 800 Equipment 15,000 Accumulated Depreciation-Equipment Accounts Payable Unearned Revenue Salaries Payable R. Pitre, Capital $21,400 $1,500 3,100 400 700 15,700 $21,400 During September, the following transactions were completed: Borrowed $10,000 from the bank and signed a two-year, 5% note payable. Sept. 1 8 Paid $1,100 for employees' salaries, of which $400 is for September and $700 for August Received $1,200 cash from customers on account. 10 8 10 12 17 20 Paid $1.100 for employees' salaries, of which $400 is for September and $700 for August. Received $1,200 cash from customers on account. Received $3,400 cash for services performed in September Purchased additional supplies on account, $1,500. Paid creditors $4,500 on account. Paid September and October rent, $1,000 ($500 per month). Paid salaries, $1,200. Performed services on account and billed customers for services provided, $900. Received $700 from customers for future services, Purchased additional equipment on account, $3,000. 22 25 27 29 30 The company adjusts its accounts on a monthly basis. Adjustment data consist of the following: 1 Supplies on hand at September 30 cost $1,280. 2 Accrued salaries payable at September 30 total $775. 3 Equipment has an expected useful life of five years Unearned service revenue of $400 is still not earned at September 30, 5 Interest is payable on the first of each month 4 Enter the September 1 balances in the general ledger accounts Cash Date Explanation Ref. Debit Credit Balance Enter the September 1 balances in the general ledger accounts Cash Date Explanation Ref. Debit Credit Balance Balance Accounts Receivable Date Explanation Ref. Debit Credit Balance Balance V Supplies Date Explanation Ref. Debit Credit Balance Balance Equipment Date Explanation Ref. Debit Credit Balance Balance Accumulated Depreciation - Equipment Date Explanation Ref. Debit Credit Balance Balance Balance Accounts Payable Date Explanation Ref. Debit Credit Balance Balance Uneared Revenue Date Explanation Ref. Debit Credit Balance Balance V Salaries Payable Date Explanation Ref. Debit Credit Balance Balance V R. Pitre, Capital Date Explanation Ref. Debit Credit Balance Balance Journalize the September transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Round answers to 0 decimal places, eg 5.275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Sept. 8 Sept. 8 Sept. 22 Sept. 22 Post to the ledger accounts. Post entries in the order of Journal entry presented in the previous part. Round answers to 0 decimal places, a 5.275 Debit Credit Balance Cash Date Aug 31 Explanation Ref Balance 180 3102 3102 JI 102 Recounts Receivable Date Explanation Ref Credit Balance Debit 20 Accounts Receivable Date Explanation Ref. Aug. 31 Balance Debit Balance Credit 3,720 3102 3102 Prepaid Rent Date Explanation Ref. Debit Credit Balance J102 Supplies Date Aug. 31 Debit Credit Credit Balance Explanation Ref. Balance 800 3102 Equipment Date Aug. 31 Debit Credit Balance Explanation Ref. Balance 15.000 J102 Accumulated Depreciation - Equipment Date Explanation Ref. Aug. 31 Balance Debit Credit Balance 1.500 Equipment Date Aug. 31 Debit Credit Balance Explanation Ref. Balance 15,000 3102 Debit Credit Balance Accumulated Depreciation - Equipment Date Explanation Ref. Aug. 31 Balance Accounts Payable Date Explanation Ref. Aug. 31 Balance 1.500 Debit Credit Balance 3.100 J102 3102 J102 Unearned Revenue Date Explanation Ref. Aug. 31 Balance V Debit Credit Balance 400 0102 Salaries Payable Date Explanation Ref. Debit Credit Balance Debit Credit Balance 15.700 R. Pitre, Capital Date Explanation Ref. Aug. 31 Balance Service Revenue Date Explanation Ref. Balance Debit Credit J102 3102 Rent Expense Date Credit Debit Balance Explanation Ref. 1102 Credit Salaries Expense Explanation Ref. 1102 Debit Balance Date 3102