Chapter 4 problem 4.5 B Marvelous Music provides music lessons to student musici
ID: 2451565 • Letter: C
Question
Chapter 4 problem 4.5 B
Marvelous Music provides music lessons to student musicians. Some students pay in advance for lesson; others are billed after lessons have been provided. Advance payments are credited to an account entitled Unearned lesson revenue. Adjusting entries are performed on a monthly basis. An unadjusted trail balance dated December 31,2015,follows (Bears in mind that ajusting entries jave already been made for the first 11 months of 2015, but not for december.)
Marvelous Music
Unadjusted trial balance
December 31,2015
Cash.....................................................................................................$15,800
Account receivable..................................................................................$2,100
unexpired insurance.................................................................................$3,200
prepaid rent..............................................................................................$6,000
Sheet music Supplies................................................................................$450
Music equipment.......................................................................................$180,000
Accumulated depreciation; music equipment.....................................................................$72,000
etc....
Explanation / Answer
Adjusting entries are as follows:
Date
Account titles and explanation
Debit
Credit
Dec-31
Insurance expense
267
Unexpired insurance
267
(To record the adjusting entry for December month)
Dec-31
Rent expense
500
Prepaid rent
500
(To record the rent expense for the month of December)
Dec-31
Supplies expense
450
Supplies
450
(To record the supplies expense)
Date
Account titles and explanation
Debit
Credit
Dec-31
Insurance expense
267
Unexpired insurance
267
(To record the adjusting entry for December month)
Dec-31
Rent expense
500
Prepaid rent
500
(To record the rent expense for the month of December)
Dec-31
Supplies expense
450
Supplies
450
(To record the supplies expense)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.