Morgan Dance Inc provides ballet tap and jazz dancing

instruction #2308
Morgan Dance Inc provides ballet tap and jazz dancing instruction

Morgan Dance Inc. provides ballet, tap, and jazz dancing instruction to promising young
dancers. Morgan began operations in January 2020 and is preparing its monthly financial
statements.
The following items describe Morgan's transactions in January 2020:
a. Morgan requires that dance instruction be paid in advance-either monthly or quarterly.
On January 1, Morgan received $4,125 for dance instruction to be provided during 2020.
b. On January 31, Morgan noted that $825 of dance instruction revenue is still unearned.
c. On January 20, Morgan's hourly employees were paid $1,415 for work performed in January.
d. Morgan's insurance policy requires semiannual premium payments. Morgan paid the $3,000
insurance policy which covered the first half of 2020 in December 2019.
e. When there are no scheduled dance classes, Morgan rents its dance studio for birthday
parties for $100 per two-hour party. Four birthday parties were held during January. Morgan will
not bill the parents until February.
f. Morgan purchased $350 of office supplies on January 10.
g. On January 31, Morgan determined that office supplies of $85 were unused.
h. Morgan received a January utility bill for $770. The bill will not be paid until it is due in
February.
Required:
1. Identify whether each transaction is an adjusting entry or a regular journal entry. If the entry is
an adjusting entry, identify it as an accrued revenue, accrued expense, deferred revenue, or
deferred expense.
2. Prepare the entries necessary to record the transactions above and on the previous page.

Morgan Dance Inc provides ballet tap and jazz dancing instruction

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