The unadjusted trial balance of arlington air purification system at

The unadjusted trial balance of Arlington Air Purification System at Dec 31 2014 and the data needed for the adjustments follow. 

 

 

    and so on…………..

 

 

 

 

Adjustment data at Dec 31 follow:

 

1.  On Dec. 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 Dec. 31, Arlington has completed $1,100 of the services.

2.  Arlington prepaid two months of rent on Dec. 1

3.  Arlington used $600 of office supplies

4.  Depreciation for the equipment is $900

5.  Arlington received a bill for December’s online advertising ,  $900. Arlington will not pay the bill until January. (Use Accounts Payable)

6.  Arlington pays employees on  Monday for the previous weekly wages. Employees earn $1,500 for a five-day workweek. Dec. 31 falls on Wednesday this year. 

7.  On Oct. 1, Arlington agreed to provide a four-month air system check (beginning Oct. 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. 

 

 

Required:

A.  Journalize the adjusting entries on Dec. 31

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

C.  Prepare the adjusted trial balance

D.  How will Arlington Air Purification System use the adjusted trial balance?

 

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