mummal statements would be misstated and if the misstatement is overstated or understated. Use the following table as a guide. Adjusting Entry Specific Category of Accounts on the Balance Sheet Over Understated Specific Category of Accounts on the Income Statement Ower Understated P3-35A Journalining and posting adjustments to the T-accounts and preparing an adjusted trial balance The unadjusted trial balance of Aurora Air Purification System at December 31, 2016, and the data needed for the adjustments follow. Learning Objectives 3, 4 3. Adjusted trial balance 569,750 total AURORA AIR PURIFICATION SYSTEM Unadjusted Trial Balance December 31, 2016 Account Title Credit Balance Debit $ 7,800 19,800 2.600 1.100 19.900 $ 4,100 3,000 Accounts Receivable Prepaid Rent Office Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Salaries Payable Unearned Revenue Aurora, Capital Aurora, Withdrawals Service Revenue Salaries Expense Rent Expense Depreciation Expense-Equipment Advertising Expense Supplies Expense Total 2,800 39,600 9,300 15.400 3,100 1,300 $ 64,900 $ 64,900 Adjustment data at December 31 follow: a. On December 15, Aurora contracted to perform services for a client receiving $2,800 in advance. Aurora recorded this receipt of cash as Uneamed Revenue. As of December 31, Aurora has completed $1,800 of the services. b. Aurora prepaid two months of rent on December 1. c. Aurora used $600 of office supplies. d. Depreciation for the equipment is $700. e. Aurora received a bill for December's online advertising, $1,000. Aurora will not pay the bill until January. (Use Accounts Payable.) f. Aurora pays its employees on Monday for the previous week's wages. Its employees earn $1,500 for a five-day workweek. December 31 falls on Wednesday this year. g. On October 1, Aurora agreed to provide a four-month air system check (beginning October 1) for a customer for $3,000. Aurora 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 Aurora Air Purification System use the adjusted trial balance