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

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. For information on the amount of the accrued revenue to be billed to KXMD, see the contract described in the July 3 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 in 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 in Chapter 2.
• Accrued wages as of July 31 were $140.
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.

Transcribed Image Text:

PS Music Unadjusted Trial Balance July 31, 2019 Account No Deblt Balances Balances Credit Cash 9,945 2,750 1,020 2,700 7,500 12 14 15 17 21 23 31 32 41 50 51 52 53 54 Supplies 8,350 7,200 9,000 1,750 Fees Earned 16,200 2,800 2,550 1,375 1,215 3,610 1,500 180 1,855 Supplies Expense 56 59 40,750 40,750