Question

Question :The unadjusted trial balance of Anniston Air Purification System at December 31, 2018, and the data needed for the adjustments follow ANNISTON AIR PURIFICATION SYSTEM Unadjusted Trial Balance December 31, 2018 Adjustment data at December 31 follow Account 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 \( 69,000 22,000 43,800 3,100 15,300 19,700 2,900 1,800 \) 3,900 2,900 9,900 3,300 1,800 a. On December 15, Anniston contracted to perform services for a client receiving \(3,100 in advance. Anniston recorded this receipt of cash as Unearned Revenue. As of December 31, Anniston has completed \)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 \(750 of office supplies. d. Depreciation for the equipment is \)850. e. Anniston received a bill for December’s online advertising, \(1,100. Anniston will not pay the bill until January. (Use Accounts Payable.) f. Anniston pays its employees on Monday for the previous week’s wages. Its employees earn \)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

Adjusted trial balance is shown as follows:

ANNISTON AIR PURIFICATION SYSTEM
Adjusted Trial Balance
December 31, 2018
	Balance
Account Title	Debit	Credit
Cash	$7,600
Accounts Receivable	22,550
Prepaid Rent	1,450
Office Supplies	1,050
Equipment	22,000
Accumulated Depreciation—Equipment		$4,750
Accounts Payable		4,000
Salaries Payable		2,100
Unearned Revenue		1,000
Common Stock		43,800
Dividends	9,900
Service Revenue		19,950
Salaries Expense	5,400
Rent Expense	1,450
Depreciation Expense—Equipment	850
Advertising Expense	2,900
Supplies Expense	750
Total	$75,600	$75,600

Step-by-step solution

Step-by-Step-SolutionStep 1: Definition on Adjusted Trial Balance

After the adjusting entries are recorded, it is posted into the ledger account, then the balance of these account is used to prepare adjusted trial balance.

Explanation on Trial Balance

In case of All mopped up company, the debit and credit balance equals $75,600 in adjusted trial balance.