Problem 2 (39 points) Funky Music provides music lessons to student musicians. 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: Lessons revenue earned but not yet recorded as of December 31, 2015, amounts to $8,210 2. Records show that $500 of cash receipts originally recorded as unearned revenue had bee earned as of December 31. 1. wolod 3. The company purchased a 6-month insurance policy on August 1, 2015, for $9,600. 4. On November 1, 2015, the company paid $7,200 for rent to cover the next 6 months. 5. Sheet music supplies consumed during december total $280. 6. All music equipment was purchased when the business was first formed. It estimated life that time was six years (72 months). 7. On November 1, 2015, the company borrowed $5,000 by signing a six-month, 6% m payable. The entire note, plus six months' interest is due on May 1, 2016. 8. Salaries earned by the employees and not yet recorded or paid at December 31 amou $5,500. FUNKY MUSIC UNADJUSTED TRIAL BALANCE DECEMBER 31, 2015 $ 15,800 2,100 Cash Accounts receivable 3,200 Unexpired insurance. Prepaid rent Sheet music supplies Music equipment. Accumulated depreciation: music equipment. Accounts payable.. 6,000 450 180,000 $ 72,000 3,500 5,000 Notes payable. Dividends payable Interest payable. Income taxes payable. 1,000 25 to t 3,400 1,100 Unearned lesson revenue. / the Capital stock.. Retained earnings. 20,000 56,600 Dividends en. 1,000 Lesson revenue eamed 154,375 Advertising expense Insurance expense.. Rent expense . Sheet music supplies expense. Utilities expense... 7,400 an 4,400 at il 16,500 emo on 5,000 780 e Depreciation expense: music equipment Salaries expense 33,000 Interest expense.. 27,500 Income taxes expense 25 13,845 $317,000 $317,000 Instructions: 1) Record the adjusting entries required at December 31, 2015 in General Journal provided below. You may omit explanations. Date Account Titles and Explanation Debit Credit www.euruni.edu Serna tatninn 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. Debl S08c8 36000 06s:6 008 001 Godo peelo da SEW o d