The data needed to determine adjustments for the two-month period ending July 31, 2010, are as follows:

a. During July, Music Depot provided guest disc jockeys for WHBD for a total of 120 hours. For information on the amount of the accrued revenue to be billed to WHBD, see the contract described in the July 3, 2010, transaction at the end of Chapter 2.

b. Supplies on hand at July 31, $175.

c. The balance of the prepaid insurance account relates to the July 1, 2010, transaction at the end of Chapter 2.

d. Depreciation of the office equipment is $60.

e. The balance of the unearned revenue account relates to the contract between Music Depot and WHBD, described in the July 3, 2010, transaction at the end of Chapter 2.

f. Accrued wages as of July 31, 2010, were $120.

Instructions

1. Prepare adjusting journal entries. You will need the following additional accounts:

-18 Accumulated DepreciationOffice Equipment

-22 Wages Payable

-57 Insurance Expense

-58 Depreciation Expense

2. Post the adjusting entries, inserting balances in the accounts affected.

3. Prepare an adjusted trial balance.

Additional info:

Music Depot Unadjusted Trial Balance July 31, 2010 Credit Balances MUSIC DEPOT 3. Total of Debit column: $40,460 Debit Balances 12,780 3,150 850 2,700 5,000 5,600 7,200 10,500 1,700 Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accounts Payable Unearned Revenue Lee Chang. Capital Lee Chang. Drawing Fees Earned Wages Expense Office Rent Expense Equipment Rent Expense Utilities Expense Music Expense Advertising Expense Supplies Expense Miscellaneous Expense 15,300 2.400 2,750 1,100 860 2,810 1,600 180 800 38,680 38,680 The data needed to determine adjustments for the two-month period ending July 31, 2010, are as follows: a. During July, Music Depot provided guest disc jockeys for WHBD for a total of 120 hours. For information on the amount of the accrued revenue to be billed to WHBD, see the contract described in the July 3, 2010, transaction at the end of Chapter 2 b. Supplies on hand at July 31, $175. c. The balance of the prepaid insurance account relates to the July 1, 2010, transaction at the end of Chapter 2 d. Depreciation of the office equipment is $60. e. The balance of the unearned revenue account relates to the contract between Music Depot and WHBD, described in the July 3, 2010, transaction at the end of Chapter 2. f. Accrued wages as of July 31, 2010, were $120. Instructions 1. Prepare adjusting journal entries. You will need the following additional accounts: 18 Accumulated Depreciation Office Equipment 22 Wages Payable 57 Insurance Expense 58 Depreciation Expense 2. Post the adjusting entries, inserting balances in the accounts affected. 3. Prepare an adjusted trial balance. The unadjusted trial balance that you prepared for Music Depot at the end of Chapter 2 should appear as follows: Music Depot Unadjusted Trial Balance July 31, 2010 Debit Credit Balances Balances Cash 12,780 Accounts Receivable 3,150 Supplies 850 Prepaid Insurance 2,700 Office Equipment 5,000 Accounts Payable 5,680 Unearned Revenue 7,200 Lee Chang, Capital 10,500 Lee Chang, Drawing 1,700 Fees Earned 15,300 Wages Expense 2,400 Office Rent Expense 2,750 Equipment Rent Expense 1,100 Utilities Expense 860 Music Expense 2,810 Advertising Expense 1,600 Supplies Expense 180 Miscellaneous Expense 800 38,680 38,680 ng Problem The transactions completed by Music Depot during June 2010 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the business's operations: July 1. Lee Chang made an additional investment in Music Depot by depositing $2,500 in Music Depot's checking account, 1. Instead of continuing to share office space with a local real estate agency Lee decided to rent office space near a local music store. Paid rent for July, $2,000. 1. Paid a premium of $2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received $1,350 on account. 3. On behalf of Music Depot, Lee signed a contract with a local radio station, WHBD, to provide guest spots for the next three months. The contract requires Music Depot to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600. Any additional hours beyond 80 will be billed to WHBD at $40 per hour. In accordance with the contract, Lee received $7,200 from WHBD as an advance payment for the first two months. 3. Paid $250 on account. 4. Paid an attorney $500 for reviewing the July 3rd contract with WHBD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from One-Stop Office Mart, $5,000. 8. Paid for a newspaper advertisement, $200. 11. Received $800 for serving as a disc jockey for a party, 13. Paid $600 to a local audio electronics store for rental of digital recording equipment 14. Paid wages of $1,000 to receptionist and part-time assistant 16. Received $1,750 for serving as a disc jockey for a wedding reception 18. Purchased supplies on account, $680. 21. Paid $420 to Upload Music for use of its current music demos in making varicus music : 1 Music Depot Unadjusted Trial Balance July 31, 2010 Credit Balances MUSIC DEPOT 3. Total of Debit column: $40,460 Debit Balances 12,780 3,150 850 2,700 5,000 5,600 7,200 10,500 1,700 Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accounts Payable Unearned Revenue Lee Chang. Capital Lee Chang. Drawing Fees Earned Wages Expense Office Rent Expense Equipment Rent Expense Utilities Expense Music Expense Advertising Expense Supplies Expense Miscellaneous Expense 15,300 2.400 2,750 1,100 860 2,810 1,600 180 800 38,680 38,680 The data needed to determine adjustments for the two-month period ending July 31, 2010, are as follows: a. During July, Music Depot provided guest disc jockeys for WHBD for a total of 120 hours. For information on the amount of the accrued revenue to be billed to WHBD, see the contract described in the July 3, 2010, transaction at the end of Chapter 2 b. Supplies on hand at July 31, $175. c. The balance of the prepaid insurance account relates to the July 1, 2010, transaction at the end of Chapter 2 d. Depreciation of the office equipment is $60. e. The balance of the unearned revenue account relates to the contract between Music Depot and WHBD, described in the July 3, 2010, transaction at the end of Chapter 2. f. Accrued wages as of July 31, 2010, were $120. Instructions 1. Prepare adjusting journal entries. You will need the following additional accounts: 18 Accumulated Depreciation Office Equipment 22 Wages Payable 57 Insurance Expense 58 Depreciation Expense 2. Post the adjusting entries, inserting balances in the accounts affected. 3. Prepare an adjusted trial balance. The unadjusted trial balance that you prepared for Music Depot at the end of Chapter 2 should appear as follows: Music Depot Unadjusted Trial Balance July 31, 2010 Debit Credit Balances Balances Cash 12,780 Accounts Receivable 3,150 Supplies 850 Prepaid Insurance 2,700 Office Equipment 5,000 Accounts Payable 5,680 Unearned Revenue 7,200 Lee Chang, Capital 10,500 Lee Chang, Drawing 1,700 Fees Earned 15,300 Wages Expense 2,400 Office Rent Expense 2,750 Equipment Rent Expense 1,100 Utilities Expense 860 Music Expense 2,810 Advertising Expense 1,600 Supplies Expense 180 Miscellaneous Expense 800 38,680 38,680 ng Problem The transactions completed by Music Depot during June 2010 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the business's operations: July 1. Lee Chang made an additional investment in Music Depot by depositing $2,500 in Music Depot's checking account, 1. Instead of continuing to share office space with a local real estate agency Lee decided to rent office space near a local music store. Paid rent for July, $2,000. 1. Paid a premium of $2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received $1,350 on account. 3. On behalf of Music Depot, Lee signed a contract with a local radio station, WHBD, to provide guest spots for the next three months. The contract requires Music Depot to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600. Any additional hours beyond 80 will be billed to WHBD at $40 per hour. In accordance with the contract, Lee received $7,200 from WHBD as an advance payment for the first two months. 3. Paid $250 on account. 4. Paid an attorney $500 for reviewing the July 3rd contract with WHBD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from One-Stop Office Mart, $5,000. 8. Paid for a newspaper advertisement, $200. 11. Received $800 for serving as a disc jockey for a party, 13. Paid $600 to a local audio electronics store for rental of digital recording equipment 14. Paid wages of $1,000 to receptionist and part-time assistant 16. Received $1,750 for serving as a disc jockey for a wedding reception 18. Purchased supplies on account, $680. 21. Paid $420 to Upload Music for use of its current music demos in making varicus music : 1