Concept explainers
Journalizing and posting adjustments to the T-accounts and preparing an adjusted
The unadjusted trial balance of Alston Air Purification System at December 31, 2016, and the data needed for the adjustments follow.
Adjustment data at December 31 follow:
a. On December 15, Alston contracted to perform services for a client receiving $2,600 in advance. Alston recorded this receipt of cash as Unearned Revenue. As of December 31, Alston has completed $1,200 of the services.
b. Alston prepaid two months of rent on December 1.
c. Alston used $650 of office supplies during the month.
d.
e. Alston received a bill for December's online advertising, $600. Alston will not pay the bill until January. (Use Accounts Payable.)
f. Alston pays its employees weekly on Monday for the previous week’s wages. Its employees earn $5,500 for a five-day workweek. December 31 falls on Wednesday this year.
g. On October 1, Alston agreed to provide a four-month air system check (beginning October 1) for a customer for $2,800. Alston has completed the system check every month, but payment has not yet been received and no entries have been made.
Requirements
1. Journalize the
2. Using the unadjusted trial balance, open the T-accounts with the unadjusted balances.
3. Prepare the adjusted trial balance.
4. How will Alston Air Purification System use the adjusted trial balance?
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Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
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