had not recorded the adjuseing, entries, indicate which specific cateory s on th

Question

had not recorded the adjuseing, entries, indicate which specific cateory s on the financial statements would be misstased and if the misstate- records adjusting entries only at the end of dhe year n December 31 for Dillon Fishing 2. If Dillon not unt of ass is oversated or understated Use the following table as a guide Specific Category of Adjusting ounts on the Balance Sheet of Accounts on the P3-35A Journalizing an adjusted trial balance The unadjusted trial balance of Adlington Air Purification Sysem at Decemiber 31.e 2014, and the data needed for the adjustments follow to the T-accounts and preparing Learning Objectives 3 ARLINGTON AIR PURIFICATION SYSTEM Unadjusted Trial Balance December 31, 2014 GL Account Title DebitCredit Accounts Receivable Prepaid Rent Office Supplies 7,700 9,200 2,400 ,300 19,900 4,300 3,600 Accounts Payable Salaries Payable Unearned Revenue Common Stock 2,600 5,400 Service Revenue Salaries Expense Rent Expense Depreciation Expense-Equipment Advertising Expense Supplies Expense Total 3,500 1,900 $ 65,400 $ 65,400 Adjustment data at December 31 follow: a. On December 15, Arlington contracted to perform services for a client receiving $2,600 in advance. Arlington recorded this receipt of cash as Unearned Revenue. As of December 31, Arlington has completed $1,100 of the services. b. Arlington prepaid two months of rent on December 1.

Explanation / Answer

Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. Unearned Revenue      1,100.00    Service Revenue      1,100.00 (To record the Service revenue) b. Rent Expense      1,200.00 $2,400 / 2      Prepaid Rent      1,200.00 (Record the rent expense) c. Supplies Expense          600.00 Office Supplies          600.00 (record the supplies expense) d. Depreciation Expense - Equip.          900.00 Accum. Dep. - Equip          900.00 (record the dep. Expense) e. Advertising Expense          900.00    Accounts Payable          900.00 (To record the accounts payable) f. Salaries Expense          900.00 $1500 X 3/5 Salaries Payable          900.00 $1500 X 3/5 (record the wages expense) g. Accounts Receivable      2,400.00 $3,200 X 3/4    Service Revenue      2,400.00 $3,200 X 3/4 (To record the Service revenue) Answer 2. Cash Accounts Receivable Office Supplies Beg. Bal.        7,700.00 Beg. Bal.      19,200.00 Beg. Bal.      1,300.00            600.00 c. g.        2,400.00 End. Bal.        7,700.00 End. Bal.      21,600.00 End. Bal.          700.00 Prepaid Rent Equipment Accumulated Dep.- Equipment Beg. Bal.        2,400.00        1,200.00 b. Beg. Bal.      19,900.00 Beg. Bal.        4,300.00            900.00 d. End. Bal.        1,200.00 End. Bal.      19,900.00 End. Bal.        5,200.00 Accounts Payable Salaries Payable Unearned Revenue Beg. Bal.        3,600.00 Beg. Bal.                   -   Beg. Bal.        2,600.00            900.00 e.          900.00 f. a.      1,100.00 End. Bal.        4,500.00 End. Bal.          900.00 End. Bal.        1,500.00 Common stock Dividends Service Revenue Beg. Bal.      39,500.00 Beg. Bal.        9,500.00 Beg. Bal.      15,400.00        1,100.00 a.        2,400.00 g. End. Bal.      39,500.00 End. Bal.        9,500.00 End. Bal.      18,900.00 Salaries Expense Rent Expense Depreciation Expense - Equipment Beg. Bal.        3,500.00 Beg. Bal.                     -   Beg. Bal.                   -   f.            900.00 b.        1,200.00 d.          900.00 End. Bal.        4,400.00 End. Bal.        1,200.00 End. Bal.          900.00 Advertising Expense Supplies Expense Beg. Bal.        1,900.00 Beg. Bal.                     -   e.            900.00 c.            600.00 End. Bal.        2,800.00 End. Bal.            600.00 Answer 3. ARLINGTON AIR PURIFICATION SYSTEM Adjusted Trial Balance Dec 31, 2014 Accounts Title Debits Credits Cash        7,700.00 Accounts Receivable      21,600.00 Office Supplies            700.00 Prepaid Rent        1,200.00 Equipment      19,900.00 Accumulated Dep.- Equipment        5,200.00 Accounts Payable        4,500.00 Salaries Payable            900.00 Unearned Revenue        1,500.00 Common stock      39,500.00 Dividends        9,500.00 Service Revenue      18,900.00 Salaries Expense        4,400.00 Rent Expense        1,200.00 Depreciation Expense - Equipment            900.00 Advertising Expense        2,800.00 Supplies Expense            600.00 Total      70,500.00      70,500.00                     -   Answer 4. Arlington will prepare the financial statements as Follows: 1. Income Statement 2. Statement of Retained Earnings 3. Balance Sheet 4. Statement of Cash Flow

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