Question
Journalizing and posting adjustments to the T-accounts and preparing an adjusted trial balance The unadjusted trial balance of Aurora Air Purification System at December 31,
Journalizing and posting adjustments to the T-accounts and preparing an
adjusted trial balance
The unadjusted trial balance of Aurora Air Purification System at December 31, 2016,
and the data needed for the adjustments follow.
Account Title
Prepaid Rent
Cash
Debit Credit
Accounts Receivable
Office Supplies
Equipment
Accumulated DepreciationEquipment
Accounts Payable
Salaries Payable
Unearned Revenue
Common Stock
Dividends
Service Revenue
Salaries Expense
Rent Expense
Depreciation ExpenseEquipment
Advertising Expense
Supplies Expense
Total
Balance
$ 7,800
$ 64,900 $ 64,900
19,900
39,600
2,800
15,400
19,800
2,600
1,100
$ 4,100
3,000
9,300
3,100
1,300
AURORA AIR PURIFICATION SYSTEM
Unadjusted Trial Balance
December 31, 2016
Adjustment data at December 31 follow:
a. On December 15, Aurora contracted to perform services for a client receiving
$2,800 in advance. Aurora recorded this receipt of cash as Unearned Revenue. As
of December 31, Aurora has completed $1,800 of the services.
b. Aurora prepaid two months of rent on December 1.
Learning Objectives 3, 4
3. Adjusted trial balance $69,750
total
CHAPTER 3
170 chapter 3
c. Aurora used $600 of office supplies.
d. Depreciation for the equipment is $700.
e. Aurora received a bill for Decembers online advertising, $1,000. Aurora will not
pay the bill until January. (Use Accounts Payable.)
f. Aurora pays its employees on Monday for the previous weeks wages. Its employees
earn $1,500 for a five-day workweek. December 31 falls on Wednesday this year.
g. On October 1, Aurora agreed to provide a four-month air system check (beginning
October 1) for a customer for $3,000. Aurora 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 Aurora Air Purification System use the adjusted trial balance?
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