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Music-1s-Us, Inc, is a supplier of musical instruments for professional and amateur musicians. The company's accountants make adjusting entries monthly, and they make all closing

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Music-1s-Us, Inc, is a supplier of musical instruments for professional and amateur musicians. The company's accountants make adjusting entries monthly, and they make all closing entries annually. The company is growing rapidly and prides itself on having no long-term liabilities The company has provided the following trial balance dated December 31,2021 1. The most recent bank statement reports a balance of $48.875. Included with the bank statement was a $2.300 check from lggy Smarts, a professional musician, charged back to Music-ts-Us as NSF. The bank's monthly service charge was $25. Three checks written by Music-Is-Us to suppliers of merchandise inventory had not yet cleared the bank for payment as of the statement date. These checks included no, 508,$3,900, no .511, $8,600, and no 521,$7,600 Deposits of $16,900 reached the bank too late for inctusion in the current bank statement. The company prepares a bank reconciliation at the end of each month 2. Music-is-Us has a portfolio of marketable securities that originally cost $26,000. As of December 31, the market value of these securities was $33,300. All short-term investments are classified as "ovalable for sale." 3. During Decembet, $5,700 of accounts recelvable were written off as uncollectible. A recent aging of the company's accounts recelvable led management to conclude that an allowance for doubtful accounts of $8,300 is needed at December 31, 2021. 4. The company uses a perpetual inventory system. A year-end physical count revealed that several guitors reported in the inventory records were missing. The cost of the missing units amounted to $1,200. This amount is not considered significant relative to the total cost of inventory on hand. 5. At December 31, approximately $880 in office supplies remained on hand 6. The company pays for its insurance policies 12 months in advance. its most recent payment was made on November 1. 2021 The cost of this policy was slightly higher than the cost of coverage for the previous 12 months 7. Depreciation expense related to the company's bulding and fixtures is $5,000 for the month ending December 31 . 8. Although Music-ls-Us carries an extensive inventory, it is not uncommon for expenienced musicians to order custom 2021 guitars made to their exact specificotions. Manufacturers do not allow any sales retums of customimade guitars. The entire sales amount is colected at the time a custom order is placed, and is crodited to an account entiled "Uneamed Customer Deposits" As of December 31, $4,100 of these deposits remained unfilled because the speciol order guitars have not been recelved from the manutacturer. The cost of goods sold and the reduction in inventory associated with all custom orders is recorded when the custom merchandise is delivered to customers. As that time, the adjusting entry requires only a decrease to unearned customer deposits and an increase in sales 9. Accrued income toxes payable for the entire year ending December 31,2021 , total $79,000 No income tax poyments are due until early in 2022 . On the basis of the odjustments made to the accounting records in parts a through i. prepare the comparys adjusted thal baliance 1. On the basis of the adjustments made to the accounting records in parts a through L prepore the compary's adjusted thal balance at December 31, 2021 Music-1s-Us, Inc, is a supplier of musical instruments for professional and amateur musicians. The company's accountants make adjusting entries monthly, and they make all closing entries annually. The company is growing rapidly and prides itself on having no long-term liabilities The company has provided the following trial balance dated December 31,2021 1. The most recent bank statement reports a balance of $48.875. Included with the bank statement was a $2.300 check from lggy Smarts, a professional musician, charged back to Music-ts-Us as NSF. The bank's monthly service charge was $25. Three checks written by Music-Is-Us to suppliers of merchandise inventory had not yet cleared the bank for payment as of the statement date. These checks included no, 508,$3,900, no .511, $8,600, and no 521,$7,600 Deposits of $16,900 reached the bank too late for inctusion in the current bank statement. The company prepares a bank reconciliation at the end of each month 2. Music-is-Us has a portfolio of marketable securities that originally cost $26,000. As of December 31, the market value of these securities was $33,300. All short-term investments are classified as "ovalable for sale." 3. During Decembet, $5,700 of accounts recelvable were written off as uncollectible. A recent aging of the company's accounts recelvable led management to conclude that an allowance for doubtful accounts of $8,300 is needed at December 31, 2021. 4. The company uses a perpetual inventory system. A year-end physical count revealed that several guitors reported in the inventory records were missing. The cost of the missing units amounted to $1,200. This amount is not considered significant relative to the total cost of inventory on hand. 5. At December 31, approximately $880 in office supplies remained on hand 6. The company pays for its insurance policies 12 months in advance. its most recent payment was made on November 1. 2021 The cost of this policy was slightly higher than the cost of coverage for the previous 12 months 7. Depreciation expense related to the company's bulding and fixtures is $5,000 for the month ending December 31 . 8. Although Music-ls-Us carries an extensive inventory, it is not uncommon for expenienced musicians to order custom 2021 guitars made to their exact specificotions. Manufacturers do not allow any sales retums of customimade guitars. The entire sales amount is colected at the time a custom order is placed, and is crodited to an account entiled "Uneamed Customer Deposits" As of December 31, $4,100 of these deposits remained unfilled because the speciol order guitars have not been recelved from the manutacturer. The cost of goods sold and the reduction in inventory associated with all custom orders is recorded when the custom merchandise is delivered to customers. As that time, the adjusting entry requires only a decrease to unearned customer deposits and an increase in sales 9. Accrued income toxes payable for the entire year ending December 31,2021 , total $79,000 No income tax poyments are due until early in 2022 . On the basis of the odjustments made to the accounting records in parts a through i. prepare the comparys adjusted thal baliance 1. On the basis of the adjustments made to the accounting records in parts a through L prepore the compary's adjusted thal balance at December 31, 2021

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