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Posted: February 27th, 2023
Journal Entries P3-35A Journalizing and posting adjustments
P3-35A
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
follow.
Debit Credit
Cash $7800
Accounts Receivable 19800
Prepaid rent 2600
Office Supplies 1100
Equipment 19900
Accumulated DepreciationâEquipment 4100
Accounts Payable 3000
Salaries Payable
Unearned Revenue 2800
Common Stock 39600
Dividends 9300
Service Revenue 15400
Salaries Expense 3100
Rent Expense
Depreciation ExpenseâEquipment
Advertising Expense 1300
Supplies Expense
Total 64900 64900
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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
December 1.
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
Payable.)
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
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 Aurora Air Purification System
use the adjusted trial balance?
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