The unadjusted trial balance that you prepared for PS Music at the end of Chapter $2$ should appear as follows:

PS Music

UNADJUSTED TRIAL BALANCE

July $31,20$Y$9$

ACCOUNT TITLEDEBITCREDIT

$1$

Cash

$9,945\mathrm{.}00$

$$

$2$

Accounts Receivable

$2,750\mathrm{.}00$

$$

$3$

Supplies

$1,020\mathrm{.}00$

$$

$4$

Prepaid Insurance

$2,700\mathrm{.}00$

$$

$5$

Office Equipment

$7,500\mathrm{.}00$

$$

$6$

Accounts Payable

$$

$8,350\mathrm{.}00$

$7$

Unearned Revenue

$$

$7,200\mathrm{.}00$

$8$

Peyton Smith, Capital

$$

$9,000\mathrm{.}00$

$9$

Peyton Smith, Drawing

$1,750\mathrm{.}00$

$$

$10$

Fees Earned

$$

$16,200\mathrm{.}00$

$11$

Wages Expense

$2,800\mathrm{.}00$

$$

$12$

Office Rent Expense

$2,550\mathrm{.}00$

$$

$13$

Equipment Rent Expense

$1,375\mathrm{.}00$

$$

$14$

Utilities Expense

$1,215\mathrm{.}00$

$$

$15$

Music Expense

$3,610\mathrm{.}00$

$$

$16$

Advertising Expense

$1,500\mathrm{.}00$

$$

$17$

Supplies Expense

$180\mathrm{.}00$

$$

$18$

Miscellaneous Expense

$1,855\mathrm{.}00$

$$

$19$

Totals

$40,750\mathrm{.}00$

$40,750\mathrm{.}00$

The data needed to determine adjustments are as follows:

$$During July, PS Music provided guest disc jockeys for KXMD for a total of $115$ hours. Since the company only contracted for $80$ hours per month, make an adjusting entry to accrue$$the additional $35$ hours of service. NOTE: The unearned revenue account will not be affected in this adjustment. For information on the amount of the accrued revenue to be billed to KXMD$,$ see the contract described in the July $3,20$Y$9,$ transaction at the end of Chapter $2.*$Supplies on hand at July $31,$ $$275.$The balance of the prepaid insurance account relates to the July $1$ transaction at the end of Chapter $2.*$Depreciation of the office equipment is $$50.$The balance of the unearned revenue account relates to the contract between PS Music and KXMD$,$ described in the July $3$ transaction at the end of Chapter $2.*$Accrued wages as of July $31$ were $$140.$

$*$The chapter $2$ list of transactions are included in a separate panel of this problem for your convenience.

Required:

$1.$Prepare adjusting journal entries on page $3$ of the journal. $($Please note that pages $1$ and $2$ shows the transactions that were recorded in Continuing Problem $2$ from chapter $2.)$ Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Note that Chart of Accounts has the following additional accounts: $18$ Accumulated Depreciation$-$Office Equipment; $22$ Wages Payable; $57$ Insurance Expense; $58$ Depreciation Expense$\mathrm{.}2.$Post the adjusting entries, inserting balances in the accounts affected. Record DATE, POST. REF., a debit or credit and a debit or credit under BALANCE on every line. Leave ITEM blank. In CNOW, Journal pages do not begin with $$J$.$ For example journal page $10$ POST. REF. is simply $10.$ If the ending balance is $$0,$ at least one balance amount should be $$0\mathrm{.}3.$Prepare an adjusted trial balance.