The unadjusted trial balance of Canton Air Purification System at December 31, 2014, and the data needed for the adjustments follow.

Adjustment data at December 31 follow:
a. On December 15, Canton contracted to perform services for a client receiving $ 2,000 in advance. Canton recorded this receipt of cash as Unearned Revenue. As of December 31, Canton has completed $ 1,800 of the services.
b. Canton prepaid two months of rent on December 1.
c. Canton used $ 400 of office supplies during the month.
d. Depreciation for the equipment is $ 700.
e. Canton received a bill for December’s online advertising, $ 400. Canton will not pay the bill until January. (Use Accounts Payable.)
f. Canton pays its employees weekly on Monday for the previous week’s wages. Its employees earn $ 2,000 for a five-day workweek. December 31 falls on Wednesday this year.
g. On October 1, Canton agreed to provide a four-month air system check (beginning October 1) for a customer for $ 2,040. Canton 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 Canton Air Purification System use the adjusted trialbalance?

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CANTON AIR PURIFICATION SYSTEM Unadjusted Trial Balance December 31, 2014 Balance Account Title Cash Accounts Receable Prepaid Rent Office Supplies Equipment Debit 5 7,200 19,400 2.200 1,600 20,000 Credit 3,700 3400 Accounts Payable Salanes Pavable Unearned Revenue Common Stock DMdends Service Revenue Salanes Epense Rent Expense Depredaven Expense Equipment Advertising Expense Supplies Expense Total 2,600 9,000 9,600 15,900 3.300 1,300 $ 64,600 $64,600