Trial Balance

Journalize the adjusting entries on December $31.$

The T$-$accounts, along with their unadjusted balances have been opened for

you. Post the adjusting entries to the T$-$accounts.

Prepare the adjusted trial balance.

How will Avery IT Services use the adjusted trial balance?

Adjustment data at December $31$ follqw:

A$.$ On December $15,$ Avery IT Services contracted to perform services for a client receiving

$$2,200$ in advance. Avery IT Services recorded this receipt of cash as Unearned

Revenue. As of December $31,$ Avery IT Services has completed $$1,300$ of the services.

B$.$ Avery IT Services prepaid two months of rent on December $1.($Assume the Prepaid

Rent balance as shown on the unadjusted trial balance represents the two months of

rent prepaid on December $1.)$

C$.$ Avery IT Services used $$400$ of supplies.

D$.$ Depreciation for the equipment is $$600.$

E$.$ Avery IT Services received a bill for December's online advertising, $$700.$

Avery IT Services will not pay the bill until January. $($Use Accounts Payable.$)$

F$.$ Avery IT Services pays its employees on Monday for the previous week's salaries. Its

employees earn $$7,000$ for a five$-$day workweek. December $31$ falls on Wednesday this

year.

G$.$ On October $1,$ Avery IT Services agreed to provide four$-$months of IT

services $($beginning October $1)$ for a customer for $$3,000.$ Avery IT Services has

completed the services every month, but payment has not yet been received and no

entries have been made.