Question

Question :The unadjusted trial balance of Anniston Air Purification System at December 31, 2018, and the data needed for the adjustments followANNISTON AIR PURIFICATION SYSTEM Unadjusted Trial Balance December 31, 2018 Adjustment data at December 31 followAccount Title Prepaid Rent Cash Debit Credit Accounts Receivable Office Supplies Equipment Accumulated Depreciation—Equipment Accounts Payable Salaries Payable Unearned Revenue Common Stock Dividends Service Revenue Salaries Expense Rent Expense Depreciation Expense—Equipment Advertising Expense Supplies Expense Total Balance $7,600$ 69,000 $69,00022,00043,8003,10015,30019,7002,9001,800$ 3,900 2,900 9,900 3,300 1,800 a. On December 15, Anniston contracted to perform services for a client receiving $3,100inadvance.AnnistonrecordedthisreceiptofcashasUnearnedRevenue.AsofDecember31,Annistonhascompleted$2,100 of the services. b. Anniston 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. Anniston used $750ofofficesupplies.d.Depreciationfortheequipmentis$850. e. Anniston received a bill for December’s online advertising, $1,100.AnnistonwillnotpaythebilluntilJanuary.(UseAccountsPayable.)f.AnnistonpaysitsemployeesonMondayforthepreviouswee{k}^{\prime }swages.Itsemployeesearn$3,500 for a five-day workweek. December 31 falls on Wednesday this year. g. On October 1, Anniston agreed to provide a four-month air system check (beginning October 1) for a customer for $3,400. Anniston 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 Anniston Air Purification System use the adjusted trial balance?

Short answer

T accounts are as follows:

Cash
	$7,600
Bal.	$7,600

Accounts Receivable
	$19,700
(g)	$2,550
Bal.	$22,250

Office Supplies
	$1,800	$750	(c)
Bal.	$1,050

Prepaid Rent
	$2,900	$1,450	(b)
Bal.	$1,450

Equipment
	$22,000
Bal.	$22,000

Accumulated Depreciation- Equipment
		$3,900
		$850
		$4,750	Bal.

Accounts Payable
		$2,900
		$1,100	(e)
		$4,000	Bal.

Salaries Payable
		$2,100	(f)
		$2,100	Bal.

Unearned Revenue
(a)	$2,100	$3,100
		$1,000	Bal.

Common Stock
		$43,800
		$43,800	Bal.

Dividends
	$9,900
Bal.	$9,900

Service Revenue
		$15,300
		$2,100	(a)
		$2,550	(g)
		$19,950	Bal.

Salaries Expense
	$3,300
(f)	$2,100
Bal.	$5,400

Rent Expense
(b)	$1,450
Bal.	$1,450

Depreciation Expense-Equipment
(d)	$850
Bal.	$850

Advertising Expense
	$1,800
(e)	$1,100
Bal.	$2,900

Supplies Expense
(c)	$750
Bal,	$750

Step-by-step solution

Step-by-Step-SolutionStep1: Explanation on T account

T account is prepared in the T style fortmat, which records the changes in the accounts.

Explanation on Adjusting Entries

Adjusting entries are the year end entries, which are recorded to record the accrued revenues and expenses for the period.