ARLINGTON AIR PURIFICATION SYSTEM

Unadjusted Trial Balance

December 31, 2014

Account Title	Balance
	Debit	Credit
Cash	$7000
Accounts Receivable	19200
Prepaid Rent	2400
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 ExpenseEquipment
Advertising Expense	1,900
Supplies Expense
Total	$ 65,400	$ 65,400

Adjusted trial balance, $70,500 total

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 Decembers 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?