Requirement 1. Journalize the adjusting entries on December 31. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. On December 15, Ashton contracted to perform services for a client receiving $2,600 in advance. Ashton recorded this receipt of cash as Unearned Revenue. As of December 31, Ashton has completed $1,200 of the services. Debit Credit Accounts and Explanation (a) Dec. 31 -S s Date Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Advertising Expense Ashton, Capital Ashton, Withdrawals Cash Depreciation Expense-Equipment Equipment Office Supplies Prepaid Rent Rent Expense Salaries Expense Salaries Payable Service Revenue Supplies Expense Get mor Unearned Revenue ▼ More info Adjustment data at December 31 follow: a. On December 15, Ashton contracted to perform services for a client receiving $2,600 in advance. Ashton recorded this receipt of cash as Unearned Revenue. As of December 31, Ashton has completed $1,200 of the services. b. Ashton 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. Ashton used $650 of office supplies. d. Depreciation for the equipment is $650. e. Ashton received a bill for December's online advertising, $1,000. Ashton will not pay the bill until January. (Use Accounts Payable.) f. g. On October 1, Ashton agreed to provide a four-month air system check (beginning October 1) for a customer for $3,600. Ashton has completed the system check every month, but payment has not yet been received and no entries have been made. Ashton pays its employees on Monday for the previous week's wages. Its employees earn $6,000 for a five-day workweek. December 31 falls on Tuesday this year. Print Done X

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Account Title
Cash
Ashton Air Purification System
Unadjusted Trial Balance
December 31, 2024
Accounts Receivable
Prepaid Rent
Office Supplies
Equipment
Accumulated Depreciation Equipment
Accounts Payable
Salaries Payable
Unearned Revenue
Ashton, Capital
Ashton, Withdrawals
Service Revenue
Salaries Expense
Rent Expense
Depreciation Expense-Equipment
Advertising Expense
Supplies Expense
Total
$
$
Balance
Debit
7,200
19,300
2,500
1,700
19,500
9,200
3,800
1,500
64,700 $
Credit
3,600
3,200
2,600
39,400
15,900
64,700
Transcribed Image Text:Account Title Cash Ashton Air Purification System Unadjusted Trial Balance December 31, 2024 Accounts Receivable Prepaid Rent Office Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Salaries Payable Unearned Revenue Ashton, Capital Ashton, Withdrawals Service Revenue Salaries Expense Rent Expense Depreciation Expense-Equipment Advertising Expense Supplies Expense Total $ $ Balance Debit 7,200 19,300 2,500 1,700 19,500 9,200 3,800 1,500 64,700 $ Credit 3,600 3,200 2,600 39,400 15,900 64,700
Requirement 1. Journalize the adjusting entries on December 31. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
a. On December 15, Ashton contracted to perform services for a client receiving $2,600 in advance. Ashton recorded this receipt of cash as Unearned Revenue. As of December 31, Ashton has completed $1,200 of the services.
Accounts and Explanation
Debit
Credit
es
Date
(a) Dec. 31
Get mor
Accounts Payable
Accounts Receivable
Accumulated Depreciation-Equipment
Advertising Expense
Ashton, Capital
Ashton, Withdrawals
Cash
Depreciation Expense-Equipment
Equipment
Office Supplies
Prepaid Rent
Rent Expense
Salaries Expense
Salaries Payable
Service Revenue
Supplies Expense
Unearned Revenue
More info
Adjustment data at December 31 follow:
a. On December 15, Ashton contracted to perform services for a client receiving $2,600 in
advance. Ashton recorded this receipt of cash as Unearned Revenue. As of December 31,
Ashton has completed $1,200 of the services.
b. Ashton 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. Ashton used $650 of office supplies.
d. Depreciation for the equipment is $650.
e. Ashton received a bill for December's online advertising, $1,000. Ashton will not pay the
bill until January. (Use Accounts Payable.)
f.
Ashton pays its employees on Monday for the previous week's wages. Its employees earn
$6,000 for a five-day workweek. December 31 falls on Tuesday this year.
g.
On October 1, Ashton agreed to provide a four-month air system check (beginning October
1) for a customer for $3,600. Ashton has completed the system check every month, but
payment has not yet been received and no entries have been made.
Print
Done
X
Transcribed Image Text:Requirement 1. Journalize the adjusting entries on December 31. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. On December 15, Ashton contracted to perform services for a client receiving $2,600 in advance. Ashton recorded this receipt of cash as Unearned Revenue. As of December 31, Ashton has completed $1,200 of the services. Accounts and Explanation Debit Credit es Date (a) Dec. 31 Get mor Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Advertising Expense Ashton, Capital Ashton, Withdrawals Cash Depreciation Expense-Equipment Equipment Office Supplies Prepaid Rent Rent Expense Salaries Expense Salaries Payable Service Revenue Supplies Expense Unearned Revenue More info Adjustment data at December 31 follow: a. On December 15, Ashton contracted to perform services for a client receiving $2,600 in advance. Ashton recorded this receipt of cash as Unearned Revenue. As of December 31, Ashton has completed $1,200 of the services. b. Ashton 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. Ashton used $650 of office supplies. d. Depreciation for the equipment is $650. e. Ashton received a bill for December's online advertising, $1,000. Ashton will not pay the bill until January. (Use Accounts Payable.) f. Ashton pays its employees on Monday for the previous week's wages. Its employees earn $6,000 for a five-day workweek. December 31 falls on Tuesday this year. g. On October 1, Ashton agreed to provide a four-month air system check (beginning October 1) for a customer for $3,600. Ashton has completed the system check every month, but payment has not yet been received and no entries have been made. Print Done X
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