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Pronghorn Co. provides music lessons to many clients across the city. The following information is available to be used in recording annual adjusting entries at
Pronghorn 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, 2024, year end: 1. On September 30,2023 , the company had a balance of $2,120 in its Supplies account. Additional supplies were purchased during the year totalling $1,760. The supplies inventory on September 30,2024 , amounts to $620. 2. On November 1, 2023, Pronghorn purchased a one-year insurance policy for $3,600. 3. On January 2, 2024, a client paid \$2,100 for six months of lessons starting April 2, 2024. 4. On February 1, 2024, Pronghorn purchased a grand piano (to be used in music lessons) for $31,920. The piano's estimated useful life is 14 years. 5. On May 1,2024 , Pronghorn borrowed $29,520 from the bank and signed a 10-month, 6% note payable. Interest and principal are to be paid at maturity. 6. On August 1, 2024, Pronghorn signed a contract with a neighbourhood school to provide weekly piano lessons to some of its students for a fee of $2,300 per month. The contract called for lessons to start the beginning of September. The school has not yet been sent an invoice for the entire month of September. 7. On August 15, 2024, the company paid $9,900 to Wildhorse Holdings to rent additional studio space for nine months starting September 1. Pronghorn recorded the full payment as Prepaid Rent. 8. Pronghorn's instructors have earned salaries of $2,860 for the last week of September 2024 . This amount will be paid to the instructors on the next payday in October. 9. Music lessons were provided to a local church group for $1,800 on September 30,2024 . Pronghorn has not yet invoiced the group or recorded the transaction. 1. On September 30,2023 , the company had a balance of $2,120 in its Supplies account. Additional supplies were purchased during the year totalling $1,760. The supplies inventory on September 30,2024 , amounts to $620. 2. On November 1, 2023, Pronghorn purchased a one-year insurance policy for $3,600. 3. On January 2,2024 , a client paid $2,100 for six months of lessons starting April 2, 2024. 4. On February 1, 2024, Pronghorn purchased a grand piano (to be used in music lessons) for $31,920. The piano's estimated useful life is 14 years. 5. On May 1, 2024, Pronghorn borrowed $29,520 from the bank and signed a 10 -month, 6% note payable. Interest and principal are to be paid at maturity. 6. On August 1, 2024, Pronghorn signed a contract with a neighbourhood school to provide weekly piano lessons to some of its students for a fee of $2,300 per month. The contract called for lessons to start the beginning of September. The school has not yet been sent an invoice for the entire month of September. 7. On August 15, 2024, the company paid $9,900 to Wildhorse Holdings to rent additional studio space for nine months starting September 1. Pronghorn recorded the full payment as Prepaid Rent. 8. Pronghorn's instructors have earned salaries of $2,860 for the last week of September 2024 . This amount will be paid to the instructors on the next payday in October. 9. Music lessons were provided to a local church group for $1,800 on September 30,2024 . Pronghorn has not yet invoiced the group or recorded the transaction. 10. In early October 2024, Pronghorn received an invoice for $930 from the utility company for September utilities. The amount has not yet been recorded or paid
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