Module2

Date

Accounts and Explanation

Debit

Credit

a. Dec. 31

Unearned Revenue

Service Revenue

To record service revenue earned that was collected in advance.

b. Dec. 31

To record rent expense.

c. Dec. 31

To record office supplies used.

d. Dec. 31

Depreciation Expense—Equipment

Accumulated Depreciation—Equipment

To record depreciation on equipment.

e. Dec. 31

To accrue advertising expense.

f. Dec. 31

To accrue salaries expense.

g. Dec. 31

To accrue service revenue.

$2,400

Rent prepaid on December 1 for two months

2

months

$1,200

Rent Expense for December

$1,500

Payroll for a 5-day work week

5

work days

$

Salaries Expense per work day

Thus,

Salaries Expense per work day

×

work days

Salaries Expense for Monday through Wednesday

Service Revenue to be earned October through January

months

$

Service Revenue earned per month

Thus,

$

Service Revenue earned per month

×

months

$

Service Revenue earned October through December

Cash

Accounts Payable

Service Revenue

Bal.

7,700

3,600

Bal.

15,400

Bal.

Bal.

7,700

Accounts Receivable

Salaries Payable

Salaries Expense

Bal.

19,200

900

f.

Bal.

3,500

Prepaid Rent

Unearned Revenue

Rent Expense

Bal.

2,400

2,600

Bal.

Office Supplies

Arlington, Capital

Depreciation Expense—Equipment

Bal.

1,300

39,500

Bal.

Equipment

Arlington, Withdrawals

Advertising Expense

Bal.

19,900

Bal.

9,500

Bal.

1,900

Accumulated Depreciation—Equipment

Supplies Expense

4,300

Bal.

ARLINGTON AIR PURIFICATION SYSTEM

Adjusted Trial Balance

December 31, 2014

Account Title

Balance

Debit

Credit

Cash

$ 7,700

Accounts Receivable

Prepaid Rent

Office Supplies

Equipment

Accumulated Depreciation—Equipment

Accounts Payable

4,500

Salaries Payable

Unearned Revenue

Arlington, Capital

Arlington, Withdrawals

Service Revenue

Salaries Expense

Rent Expense

1,200

Depreciation Expense—Equipment

Advertising Expense

Supplies Expense

Total

$ 70,500

$ 70,500