ACC250 Topic 3 Assignment - GROUND

Problem 1 : P3-35A

Background:

The unadjusted trial balance of Anniston Air Purification System is included in the Reports tab. Anniston determined that several adjusting entries are needed based on this unadjusted trial balance. Data for these adjustments is included in the transaction list below.

Assignment:

1) Using the General Journal tab, click Add Transaction to journalize each adjusting entry. Click Post Transaction once you complete the entry, then repeat these steps for each transaction.

2) Click the Reports tab and review the results of recording these transactions on the General Ledger.

3) Under the Reports tab, review the Trial Balance generated as a result of recording these transactions.

4) Under the Reports tab, review the Income Statement and Balance Sheet generated as a result of recording these transactions.

5) Click Submit Work when complete.

12/31/2018

On December 15, Anniston contracted to perform services for a client and recorded the amount received as Unearned Revenue (amount included in Trial Balance). As of December 31, Anniston has earned 60% of this Unearned Revenue.

12/31/2018

Anniston prepaid two months of rent on December 1. This was debited to Prepaid Rent and is included in the Trial Balance.

12/31/2018

A physical count of supplies revealed an ending balance of $500.

12/31/2018

Anniston purchased the Equipment included on the Trial Balance on 12/1/16. The equipment has a residual value of $1,000 and is expected to last a total of 10 years. Anniston last recorded depreciation of this equipment on 12/31/17.

12/31/2018

Anniston received a bill for December's online advertising, $1,100. Anniston will not pay the bill until January (Anniston uses Accounts Payable for unpaid advertising).

12/31/2018

Anniston pays its employees on Monday for the previous week's wages. Its employees earn $3,500 for the five-day workweek. December 31 falls on a Wednesday this year.

12/31/2018

On October 1, Anniston agreed to provide a four-month air system check beginning that day. The customer agreed to pay a total of $3,400 at the end of the four month service contract. As of December 31, Anniston has completed all work as necessary, but has not recorded any revenue to date.