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Trial Balance
Cash
$ 7,800
Accounts Receivable
19,600
Prepaid Rent
2,800
Supplies
1,300
Equipment
24,000
Accumulated Depreciation-Equipment
$ 4,400
Accounts Payable
3,500
Salaries Payable
Unearned Revenue
Common Stock
43,800
Dividends
9,600
Service Revenue
15,500
Salaries Expense
3,200
Rent Expense
Depreciation Expense-Equipment
Advertising Expense
1,100
Supplies Expense
Total
$ 69,400 $ 69,400
1. Journalize the adjusting entries on December 31.
2. The T-accounts, along with their unadjusted balances have been opened for
you. Post the adjusting entries to the T-accounts.
3. Prepare the adjusted trial balance.
4. How will Avery IT Services use the adjusted trial balance?
Print
Done
Adjustment data at December 31 follow:
A. On December 15, Avery IT Services contracted to perform services for a client receiving
$2,200 in advance. Avery IT Services recorded this receipt of cash as Unearned
Revenue. As of December 31, Avery IT Services has completed $1,300 of the services.
B. Avery IT Services 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. Avery IT Services used $400 of supplies.
D. Depreciation for the equipment is $600.
E. Avery IT Services received a bill for December's online advertising, $700.
Avery IT Services will not pay the bill until January. (Use Accounts Payable.)
F. Avery IT Services pays its employees on Monday for the previous week's salaries. Its
employees earn $7,000 for a five-day workweek. December 31 falls on Wednesday this
year.
G. On October 1, Avery IT Services agreed to provide four-months of IT
services (beginning October 1) for a customer for $3,000. Avery IT Services has
completed the services every month, but payment has not yet been received and no
entries have been made.
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