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
Accounts Receivable 19800
Prepaid rent 2600
Ofﬁce Supplies 1100
Accumulated DepreciationâEquipment 4100
Accounts Payable 3000
Unearned Revenue 2800
Common Stock 39600
Service Revenue 15400
Salaries Expense 3100
Advertising Expense 1300
Total 64900 64900
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
c. Aurora used $600 of office supplies.
d.Depreciation for the equipment is $700.
e. Aurora received a bill for Decemberâs
online advertising, $1,000. Aurora will not
pay the bill until January. (Use Accounts
f. Aurora pays its employees on Monday for
the previous weekâs 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
month, but payment has not yet been
received and no entries have been made.
1. Journalize the adjusting entries on
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?
The post Journal Entries P3-35A Journalizing and posting adjustments
Assignment status: Solved by our experts