Journalizing and posting adjustments to the T-accounts and preparing an adjusted trial balance
The unadjusted trial balance of Arlington 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, Arlington contracted to perform services for a client receiving $2,600 in advance. Arlington recorded this receipt of cash as Unearned Revenue.
As of December 31, Arlington has completed $1,100 of the services.
b. Arlington prepaid two months of rent on December 1.
c. Arlington used $600 of office supplies.
d. Depreciation for the equipment is $900.
e. Arlington received a bill for December's online advertising, $900. Arlington will not pay the bill until January. (Use Accounts Payable.)
f. Arlington pays its employees on Monday for the previous weekly wages. Its employees earn $1,500 for a five-day workweek. December 31 falls on Wednesday this year.
g. On October 1, Arlington agreed to provide a four-month air system check (beginning October 1) for a customer for $3,200. Arlington 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 Arlington Air Purification System use the adjusted trial balance?
Preparing financial statements including a classified balance sheet in report form, preparing and posting closing entries, and preparing a post-closing trial balance
The adjusted trial balance of Elias Real estate Appraisal at June 30, 2014, follows:
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ELIAS REAL ESTATE APPRAISAL |
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Adjusted Trial Balance |
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30-Jun-14 |
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Balance |
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| Account Title |
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Debit |
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Credit |
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| Cash |
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$4,900 |
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| Accounts Receivable |
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5,300 |
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| Office Supplies |
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2,400 |
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| Prepaid Insurance |
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1,800 |
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| Building |
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74,400 |
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| Accumulated Depreciation-Building |
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$26,700 |
| Land |
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13,600 |
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| Accounts Payable |
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19,500 |
| Interest Payable |
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8,800 |
| Salaries Payable |
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2,200 |
| Unearned Revenue |
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1,300 |
| Notes Payable (long-term) |
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40,000 |
| Elias, Capital |
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40,500 |
| Elias, Withdrawals |
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27,900 |
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| Service Revenue |
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48,200 |
| Insurance Expense |
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4,500 |
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| Salaries Expense |
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33,300 |
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| Supplies Expense |
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600 |
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| Interest Expense |
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8,800 |
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| Utilities Expense |
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2,200 |
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| Depreciation Expense-Building |
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7,500 |
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| Total |
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$187,200 |
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$187,200 |
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Requirements
1. Prepare the company's income statement for the year ended June 30, 2014.
2. Prepare the company's statement of owner's equity for the year ended June 30, 2014. Assume that there were no contributions made by the ownner during the year.
3.Prepare the the company's classified balance sheet in report form at june 30, 2014.
4. Journalize the closing entries.
5.open the T-aacounts using the balances from the adjusted trial balance and post the closing entries to the T- accounts.
6. Prepare the company's post -closing trial balance at june 30,2014.