Question

Learning Objectives 3, 4 P3-35A Journalizing and posting adjustments to the T-accounts and preparing an adjusted trial balance The unadjusted trial balance of Anniston Air Purification System at December 31, 2018, and the data needed for the adjustments follow. 3. Adjusted trial balance total $75,600 ANNISTON AIR PURIFICATION SYSTEM Unadjusted Trial Balance December 31, 2018 Account Title Cash Balance Debit Credit $ 7,600 19,700 2,900 1,800 22,000 $ 3,900 2,900 Accounts Receivable Prepaid Rent 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 3,100 43,800 9,900 15,300 3,300 1,800 $ 69,000 $ 69,000
Please explain your answer. Thank you!

Answer 1

1) Adjusting Journal Entries:
S.No.	Acc Title	Debit $	Credit $
a	Unearned revenue	2100
	Service revenue		2100
	(earned revenues recorded)
b	Rent expense	1450		(2900/2)
	Prepaid rent		1450
	(rent expense recorded)
c	Office supplies expense	750
	Office Supplies		750
	(being use of office supplies recorded)
d	Depreciation expense	850
	Acc. Dep. - Equipment		850
	(depreciation on equipment recorded)
e	Advertising expenses	1100
	Accounts payable		1100
	(advertising bill made payable)
f	Salaries expenses	2100		(3500*3/5)
	Salaries payable		2100
	(salaries due for three days made payable)
g	Accounts Receivable	2550		(3400*3/4)
	Service revenue		2550
	(three months service revenue made receivable)

2) T-Accounts:
DEBIT	AMOUNT $	CREDIT	AMOUNT $
Unearned revenue a/c
a	2100	OB	3100
CB	1000
Service Revenue a/c
CV	19950	OB	15300
		a	2100
		g	2550
Rent expense a/c
b	1450
Prepaid rent a/c
OB	2900	b	1450
		CB	1450
Office supplies expense a/c
c	750
Office Supplies a/c
OB	1800	c	750
		CB	1050
Depreciation a/c
d	850
Acc. Dep. - Equipment a/c
CB	4750	OB	3900
		d	850
Advertising expense a/c
OB	1800	CB	2900
e	1100
Accounts payable a/c
CB	4000	OB	2900
		e	1100
Salaries expense a/c
OB	3300	CB	5400
f	2100
Salaries payable a/c
		f	2100
Accounts receivable a/c
OB	19700	CB	22250
g	2550

3) Adjusted Trial Balance:
Acc Title	Debit $	Credit $
Cash	7600
Acc receivable	22250
prepaid rent	1450
Office supplies	1050
equipment	22000
Acc. Dep. - equipment		4750
Accounts payable		4000
Salaries payable		2100
Unearned revenue		1000
Common Stock		43800
Dividends	9900
Service revenue		19950
Salaries Expense	5400
Rent expense	1450
Depreciation expense	850
Advertising expense	2900
supplies expense	750
Total	75600	75600
4) Anniston Air Purification company can use the
Adjusted Trial Balance to prepare the final
Statements like Income Statements and Financial
Positions ie. balance sheet and Cash Flow statement.