Avery Air Purification System Unadjusted Trial Balance December 31, 2016 Balance Account Title Debit Credit Cash $ 7.200 Accounts Receivable 19,600 Prepaid Rent 2.900 Office Supplies 1.900 Equipment 19,700 Accumulated Depreciation-Equipment $ 4,500 Accounts Payable 3.300 Salaries Payable Inearned Revenue 3100 Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Unearned Revenue Avery, Capital Avery, Withdrawals Service Revenue Salaries Expense Rent Expense Depreciation Expense-Equipment Advertising Expense Supplies Expense Total $ 4,500 3,300 3.100 39,800 9,500 15.600 3.700 1.800 $ 66,300 $ 66.300 Adjustment data at December 31 follow: a. On December 15, Avery contracted to perform services for a client receiving $3,100 in advance. Avery recorded this receipt of cash as Unearned Revenue. As of December 31, Avery has completed $1,700 of the services. b. Avery prepaid two months of rent on December 1. c. Avery used $650 of office supplies. d. Depreciation for the equipment is $400. e. Avery received a bill for December's online advertising, $1,200. Avery will not pay the bill until January. (Use Accounts Payable.) f. Avery pays its employees on Monday for the previous week's wages. Its employees earn $6,500 for a five-day workweek. December 31 falls on Wednesday this year. g. On October 1, Avery agreed to provide a four-month air system check (beginning October 1) for a customer for $2,400. Avery has completed the system check every month but payment has not yet been received and no entries have been made. Requirement 1. Journalize the adjusting entries on December 31. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. On December 15, Avery contracted to perform services for a client receiving $3,100 in advance. Avery recorded this receipt of cash as Unearned Revenue. As of December 31, Avery has completed $1,700 of the services. Accounts and Explanation Debit Credit Date (a) Dec. 31 b. Avery prepaid two months of rent on December 1. (Assume that the Prepaid Rent balance as shown on the unadjusted trial balance represents the two months of rent prepaid on December 1.) Accounts and Explanation Date (b) Dec. 31 Debit Credit Next c. Avery used $650 of office supplies. Date (c) Dec. 31 Accounts and Explanation Debit Credit d. Depreciation for the equipment is $400. Date (d) Dec. 31 Accounts and Explanation Debit Credit e. Avery received a bill for December's online advertising, $1,200. Avery will not pay the bill until January. (Use Accounts Payable.) Date (e) Dec. 31 Accounts and Explanation Debit Credit f. Avery pays its employees on Monday for the previous week's wages. Its employees earn $6,500 for a five-day workweek. December 31 falls on Wednesday this year. Date (f) Dec. 31 Accounts and Explanation Debit Credit g. On October 1, Avery agreed to provide a four-month air system check (beginning October 1) for a customer for $2,400 Avery has completed the system check every month but payment has not yet been received and no entries have been made. Date (g) Dec. 31 Accounts and Explanation Debit Credit Requirement 2. The T-accounts, along with their unadjusted balances have been opened for you. Post the adjusting entries to the T-accounts The T-accounts, along with their unadjusted balances, if applicable, have been opened for you. Post the adjusting entries to the T-accounts using the corresponding letters (a) through (g) as posting references. Use a "Bal." posting reference to show the ending balance of each account. Review the adjusting journal entries you prepared in Requirement 1. Cash Dec. 31 7.200 Accounts Payable Service Revenue 3,300 Dec. 31 15,600 Dec. 31 Requirement 2. The T-accounts, along with their unadjusted balances have been opened for you. Post the adjusting entries to the T-accounts. The T-accounts, along with their unadjusted balances, if applicable, have been opened for you. Post the adjusting entries to the T-accounts using the corresponding letters (a) through (g) as posting references. Use a "Bal." posting reference to show the ending balance of each account. Review the adjusting journal entries you prepared in Requirement 1. Cash Dec. 31 7,200 Accounts Payable Service Revenue 3,300 Dec. 31 15,600 Dec. 31 Accounts Receivable Salaries Payable Salaries Expense Dec. 31 19,600 Dec. 31 3,700 Prepaid Rent Unearned Revenue Rent Expense Dec. 31 2,900 3,100 Dec. 31 Dec. 31 Office Supplies 1,900 Avery, Capital Depreciation Expense-Equipment 39,800 Dec. 31 Equipment Avery, Withdrawals Advertising Expense Dec. 31 19,700 Dec. 31 9,500 Dec. 31 1,800 Accumulated Depreciation-Equip 4,500 Dec. 31 Requirement 3. Prepare the adjusted trial balance. Review the T-accounts you prepared in Requirement 2. Avery Air Purification System Adjusted Trial Balance December 31, 2016 Account Title Cash Accounts Receivable Prepaid Rent Balance Debit Credit Supplies Expense Accounts Payable Salaries Payable Unearned Revenue Avery, Capital Avery, Withdrawals Service Revenue Salaries Expense Rent Expense Depreciation Expense-Equipment Advertising Expense Supplies Expense Total Requirement 4. How will Avery Air Purification System use the adjusted trial balance? The company will use the adjusted trial balance to