ARLINGTON AIR PURIFICATION SYSTEM Unadjusted Trial Balance December 31, 2014 Balance Account Title Debit Credit Cash...

 

Transcribed Image Text:

ARLINGTON AIR PURIFICATION SYSTEM Unadjusted Trial Balance December 31, 2014 Balance Account Title Debit Credit Cash $ 7,700 Accounts Receivable 19,200 Prepaid Rent 2,400 Office Supplies 1,300 Equipment 19,900 Accumulated Depreciation-Equipment $ 4,300 Accounts Payable 3,600 Salaries Payable Unearned Revenue 2,600 Arlington, Capital 39,500 Arlington, Withdrawals 9,500 Service Revenue 15,400 Salaries Expense 3,500 Rent Expense Depreciation Expense-Equipment Advertising Expense 1,900 Supplies Expense Total $ 65,400 S 65,400 Adjustment data at December 31 follow: a. On December 15, Arlington contracted to perform services for a client receiving $2,600 in advance. Arlington recorded this receipt of cash as Unearned Revenue. As of December 31, Arlington has completed $1,100 of the services. b. Arlington prepaid two months of rent on December 1. c. Arlington used $600 of office supplies. d. Depreciation for the equipment is $900. e. Arlington received a bill for December's online advertising, $900. Arlington will not pay the bill until January. (Use Accounts Payable.) f. Arlington pays its employees on Monday for the previous weekly wages. Its employees earn $1,500 for a five-day workweek. December 31 falls on Wednesday this year. g. On October 1, Arlington agreed to provide a four-month air system check (beginning October 1) for a customer for $3,200. Arlington 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 Arlington Air Purification System use the adjusted trial balance? ARLINGTON AIR PURIFICATION SYSTEM Unadjusted Trial Balance December 31, 2014 Balance Account Title Debit Credit Cash $ 7,700 Accounts Receivable 19,200 Prepaid Rent 2,400 Office Supplies 1,300 Equipment 19,900 Accumulated Depreciation-Equipment $ 4,300 Accounts Payable 3,600 Salaries Payable Unearned Revenue 2,600 Arlington, Capital 39,500 Arlington, Withdrawals 9,500 Service Revenue 15,400 Salaries Expense 3,500 Rent Expense Depreciation Expense-Equipment Advertising Expense 1,900 Supplies Expense Total $ 65,400 S 65,400 Adjustment data at December 31 follow: a. On December 15, Arlington contracted to perform services for a client receiving $2,600 in advance. Arlington recorded this receipt of cash as Unearned Revenue. As of December 31, Arlington has completed $1,100 of the services. b. Arlington prepaid two months of rent on December 1. c. Arlington used $600 of office supplies. d. Depreciation for the equipment is $900. e. Arlington received a bill for December's online advertising, $900. Arlington will not pay the bill until January. (Use Accounts Payable.) f. Arlington pays its employees on Monday for the previous weekly wages. Its employees earn $1,500 for a five-day workweek. December 31 falls on Wednesday this year. g. On October 1, Arlington agreed to provide a four-month air system check (beginning October 1) for a customer for $3,200. Arlington 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 Arlington Air Purification System use the adjusted trial balance?

Answer rating: 100% (QA)

1 Journalize the adjusting entries Date Particulars Debit Credit a Dec 31 Unearned Revenue 2600 Service Revenue 2600 b Dec 31 Rent Expense 1200 Prepai... View the full answer