The unadjusted trial balance of Avery Air Purification System at December 31, 2024, and the data needed for the adjustments follow.

Adjustment data at December 31 follow:

a. On December 15, Avery contracted to perform services for a client, receiving $2,700 in advance. Avery recorded this receipt of cash as Unearned Revenue. As of December 31, Avery has completed $2,100 of the services. 

b. Avery prepaid two months of rent on December 1. (Assume the Prepaid Rent balance as shown on the unadjusted trial balance represents the two months of rent prepaid on December 1.) 

c. Avery used $750 of office supplies during the month. 

d. Depreciation for the equipment is $800. 

e. Avery received a bill for December’s online advertising, $500. Avery will not pay the bill until January. (Use Accounts Payable.) 

f. Avery pays its employees weekly on Monday for the previous week’s wages. Its employees earn $3,000 for a five-day workweek. December 31 falls on Tuesday this year. 

g. On October 1, Avery agreed to provide a four-month air system check (beginning October 1) for a customer for $2,800. Avery has completed the system check every month, but payment has not yet been received and no entries have been made.

Requirements 

1. Journalize the adjusting entries on December 31. 

2. Using the unadjusted trial balance, open the T-accounts with the unadjusted balances. Post the adjusting entries to the T-accounts. 

3. Prepare the adjusted trial balance. 

4. How will Avery Air Purification System use the adjusted trial balance?

Transcribed Image Text:

AVERY AIR PURIFICATION SYSTEM Unadjusted Trial Balance December 31, 2024 Account Title Cash Accounts Receivable Prepaid Rent Office Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Salaries Payable Unearned Revenue Avery, Capital Avery, Withdrawals Service Revenue Salaries Expense Rent Expense Depreciation Expense-Equipment Advertising Expense Supplies Expense Total Balance Debit $ 7,100 19,100 2,400 1,400 20,000 9,400 3,900 1,900 Credit $ 3,800 3,500 2,700 39,300 15,900 $ 65,200 $ 65,200