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. Aurora used $600 of office supplies. d. Depreciation for the equipment is $700. e. Aurora received a bill for December’s 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 week’s 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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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.

Aurora used $600 of office supplies.
d. Depreciation for the equipment is $700.
e. Aurora received a bill for December’s 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 week’s 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?

P3-35A Journalizing and poeting adjustments to the T-accounts and preparing an
adjusted trial balance
The unadjusted trial balance of Aurora Air Purification System ar December 31, 2016,
and the data needed for the adjustments follow.
AURORA AIR PURIFICATION SYSTEM
Unadjusted Trial Balance
December 31, 2016
Balance
Account Title
Debit
Credit
Cash
$ 7.800
Accounts Receivable
19,800
2.600
Prepaid Rent
Office Supplies
1,100
Accumulated Depreciation-Equipment
5 4.100
Accounts Payable
3,000
Salares Payable
Unearned Reverue
2,800
Common Stock
39,600
Duvidends
9,300
Servce Revenue
15.400
Salaties Expene
3100
Rent Experse
Depreciatior Exren uoment
Advertisng Expen
Supples Expense
1:300
$64.900
$64,900
Ka.
531
Transcribed Image Text:P3-35A Journalizing and poeting adjustments to the T-accounts and preparing an adjusted trial balance The unadjusted trial balance of Aurora Air Purification System ar December 31, 2016, and the data needed for the adjustments follow. AURORA AIR PURIFICATION SYSTEM Unadjusted Trial Balance December 31, 2016 Balance Account Title Debit Credit Cash $ 7.800 Accounts Receivable 19,800 2.600 Prepaid Rent Office Supplies 1,100 Accumulated Depreciation-Equipment 5 4.100 Accounts Payable 3,000 Salares Payable Unearned Reverue 2,800 Common Stock 39,600 Duvidends 9,300 Servce Revenue 15.400 Salaties Expene 3100 Rent Experse Depreciatior Exren uoment Advertisng Expen Supples Expense 1:300 $64.900 $64,900 Ka. 531
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