Requirements 1 Journalize the adjusting entries on December

ework: Week Three: Chapter 3: Problems of 1 pt B (similar to) HW Score: 2 Adjustment data at December 31 follow Ashton has b. Ashton prepaid two months of rent on December 1 . s onine advertsing, $1,100. Ashton will not pay the bill until January (Use Accounts beon made

Solution

Answer a. Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. Unearned Revenue      2,300.00 Service Revenue      2,300.00 (record the unearned revenue earned) b. Rent Expenses 1200    Prepaid Rent 1200    (record the rent expenses for dec) c. Supplies Expense          850.00 Office Supplies          850.00 (record the supplies used) d. Depreciation Expenses - Equipment          500.00 Accumulated Deprecition - Equipment          500.00 (record the depreciation expense) e. Advertising Expense      1,100.00 Accounts Payable      1,100.00 (record the advertising expense) f. Salaries Expense      3,900.00 Salaries Payable      3,900.00 (record the salaries due) Salaries Exp. = $6,500 X 3/5 = $3,900 g. Accounts Receivable      2,100.00 Service Revenue      2,100.00 (record the service revenue earned) Service Revenue = $2,800 X 3/4 = $2,100 Answer b. Cash Accounts Receivable Prepaid Rent Bal.      7,400.00 Bal.    19,200.00 Bal.    2,400.00 1200    b. g.      2,100.00 End. Bal.      7,400.00 End. Bal.    21,300.00 End. Bal.    1,200.00 Office Supplies Equipment Accumulated Depreciation - Equip. Bal.      1,900.00          850.00 c. Bal.    23,000.00 Bal.      3,700.00          500.00 d. End. Bal.      1,050.00 End. Bal.    23,000.00 End. Bal.      4,200.00 Accounts Payable Salaries Payable Unearned Revenue Bal.      2,800.00 Bal.                   -   Bal.      2,300.00      1,100.00 e.      3,900.00 f. a.    2,300.00 End. Bal.      3,900.00 End. Bal.      3,900.00 End. Bal.                   -   Ashton, Capital Ashton, Withdrawls Service Revenue Bal.    44,200.00 Bal.      9,500.00 Bal.    15,500.00      2,300.00 a.      2,100.00 g. End. Bal.    44,200.00 End. Bal.      9,500.00 End. Bal.    19,900.00 Salaries Expense Rent Expense Depreciation Expense - Equip. Bal.      3,400.00 Bal.                   -   Bal.                 -   f.      3,900.00 b. 1200    d.       500.00 End. Bal.      7,300.00 End. Bal.      1,200.00 End. Bal.       500.00 Advertising Expense Supplies Expense Bal.      1,700.00 Bal.                   -   e.      1,100.00 c.          850.00 End. Bal.      2,800.00 End. Bal.          850.00 Answer c. Ashton Air Purification System Adjusted Trial Balance As at Dec 31, 2016 Accounts Title Debits Credits Cash        7,400.00 Accounts Receivable     21,300.00 Prepaid Rent        1,200.00 Office Supplies        1,050.00 Service Revenue     19,900.00 Equipment     23,000.00 Accumulated Depreciation - Equip.        4,200.00 Accounts Payable        3,900.00 Salaries Payable        3,900.00 Unearned Revenue                     -   Ashton, Capital     44,200.00 Ashton, Withdrawls        9,500.00 Salaries Expense        7,300.00 Rent Expense        1,200.00 Depreciation Expense - Equip.           500.00 Advertising Expense        2,800.00 Supplies Expense           850.00 Total     76,100.00     76,100.00                     -   Answer d. After Unadjusted Trial Balance, The Company will make its Financial Statements (Income Statement, Balance Sheet, Retained Earning Statement and Cash Flow Statement)