Morgan Dance Inc. provides ballet, tap, and jazz dancing instruction to promising young dancers. Morgan began operations in January and is preparing its first monthly financial statements. The following items describe Morgan$$s transactions in January: Identify whether each transaction is an adjusting entry or a regular journal entry. If the entry is an adjusting entry, identify it as an accrued revenue, accrued expense, deferred revenue, or deferred expense.

Additional Instruction

a$.$

b$.$

c$.$

d$.$

e$.$

f$.$

g$.$

h$.$ CHART OF ACCOUNTS

Morgan Dance Inc.

General Ledger

REVENUE

ASSETS

$111$ Cash

$411$ Sales Revenue

$121$ Accounts Receivable

$412$ Service Revenue

$413$ Interest Income

$414$ Rent Revenue

$124$ Prepaid Insurance

$125$ Prepaid Rent

EXPENSES

$126$ Inventory

$511$ Cost of Goods Sold

$131$ Land

$512$ Advertising Expense

$132$ Buildings

$513$ Supplies Expense

$133$ Equipment

$514$ Utilities Expense

$134$ Furniture

$515$ Rent Expense

$135$ Trucks

$139$ Accumulated Depreciation

$516$ Insurance Expense

$517$ Repairs and Maintenance Expense

$521$ Wages Expense

LIABILITIES

$211$ Accounts Payable

$531$ Interest Expense

$532$ Depreciation Expense

$212$ Notes Payable

$533$ Income Taxes Expense

$213$ Income Taxes Payable

$214$ Wages Payable

$215$ Utilities Payable

$216$ Insurance Payable

$217$ Interest Payable

$218$ Rent Payable $135$ Trucks

$139$ Accumulated Depreciation

LIABILITIES

$211$ Accounts Payable

$212$ Notes Payable

$213$ Income Taxes Payable

$214$ Wages Payable

$215$ Utilities Payable

$216$ Insurance Payable

$217$ Interest Payable

$218$ Rent Payable

$219$ Unearned Service Revenue

$231$ Bonds Payable

EQUITY

$311$ Common Stock

$321$ Retained Earnings

$331$ Dividends

$516$ Insurance Expense

$517$ Repairs and Maintenance Expense

$521$ Wages Expense

$531$ Interest Expense

$532$ Depreciation Expense

$533$ Income Taxes Expense

a$.$ Morgan requires that dance instruction be paid in advance$$either monthly or quarterly. On January $1,$ Morgan received $$4,100$ for dance instruction to be provided during the current year.

b$.$ On January $31,$ Morgan noted that $$835$ of dance instruction revenue is still unearned.

c$.$ On January $20,$ Morgan$$s hourly employees were paid $$1,405$ for work performed in January.

d$.$ Morgan$$s insurance policy requires semiannual premium payments. Morgan paid the $$3,600$ insurance policy that covered the first half of the year in December of the previous year.

e$.$ When there are no scheduled dance classes, Morgan rents its dance studio for birthday parties for $$110$ per two$-$hour party. Four birthday parties were held during January. Morgan will not bill the parents until February.

f$.$ Morgan purchased $$310$ of office supplies on January $10.$

g$.$ On January $31,$ Morgan determined that office supplies of $$95$ were unused.

h$.$ Morgan received a January utility bill for $$720.$ The bill will not be paid until it is due in February.

Required:

$1.$ Identify whether each transaction is an adjusting entry or a regular journal entry. If the entry is an adjusting entry, identify it as an accrued revenue, accrued expense, deferred revenue, or deferred expense.

$2.$ Prepare the entries necessary to record the transactions aboveMorgan Dance Inc. provides ballet, tap, and jazz dancing instruction to promising young dancers. Morgan began operations in January and is preparing its first monthly financial statements. The following items describe Morgan's transactions in January:

a$.$ Morgan requires that dance instruction be paid in advance$-$either monthly or quarterly. On January $1,$ Morgan received $$4,100$ for dance

instruction to be provided during the current year.

b$.$ On January $31,$ Morgan noted that $$835$ of dance instruction revenue is still unearned.

c$.$ On January $20,$ Morgan's hourly employees were paid $$1,405$ for work performed in January.

d$.$ Morgan's insurance policy requires semiannual premium payments. Morgan paid the $$3,600$ insurance policy that covered the first half of the

year in December of the previous year.

e$.$ When there are no scheduled dance classes, Morgan rents its dance studio for birthday parties for $$110$ per two$-$hour party. Four birthday

parties were held during January. Morgan will not bill the parents until February.

f$.$ Morgan purchased $$310$ of office supplies on January $10.$

g$.$ On January $31,$ Morgan determined that office supplies of $$95$ were unused.

h$.$ Morgan received a January utility bill for $$720.$ The bill will not be paid until it is due in February.

Required:

Identify whether each transaction is an adjusting entry or a regular journal entry. If the entry is an adjusting entry, identify it as an accrued

revenue, accrued expense, deferred revenue, or deferred expense.

Prepare the entries necessary to record the transactions above.