Reference no: EM131670730
Assignment
Complete the following exercises and problems in Excel:
I. Journalizing and posting adjustments to the T-accounts and preparing an adjusted trial balance
The unadjusted trial balance of Arlington Air Purification System at December 31, 2014, and the data needed for the adjustments follow. (Adjusted trial balance, $70,500 total)
ARLINGTON AIR PURIFICATION SYSTEM
Unadjusted Trial Balance December 31, 2014
Balance
Account Title Debits Credits
Cash $7,700
Accounts Receivable 19,200
Prepaid Rent 2,400
Office Supplies 1,300
Equipment 19,900
Accumulated Depreciation-Equipment $4,300
Accounts Payable 3,600
Salaries Payable
Unearned Revenue 2,600
Arlington, Capital 39,500
Arlington, Withdrawals 9,500
Service Revenue 15,400
Salaries Expense 3,500
Rent Expense
Depreciation Expense-Equipment
Advertising Expense 1,900
Supplies Expense
Total $ 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.
II. Preparing financial statements including a classified balance sheet in report form, preparing and posting closing entries, and preparing a post-closing trial balance (Net Loss $(8,700)).
The adjusted trail balance of Elias Real Estate Appraisal at June 30, 2014, follows:
ELIAS REAL ESTATE APPRAISAL
Adjusted Trial Balance June 30, 2014
Balance
Account Title Debit Credit
Cash $4,900
Accounts Receivable 5,300
Office Supplies 2,400
Prepaid Insurance 1,800
Building 74,400
Accumulated Depreciation-Building $26,700
Land 13,600
Accounts Payable 19,500
Interest Payable 8,800
Salaries Payable 2,200
Unearned Revenue 1,300
Notes Payable (long-term) 40,000
Elias, Capital 40,500
Elias, Withdrawals 27,900
Service Revenue 48,200
Insurance Expense 4,500
Salaries Expense 33,300
Supplies Expense 600
Interest Expense 8,800
Utilities Expense 2,200
Depreciation Expense-Building 7,500
Total $187,200 $187,200
Requirements
1. Prepare the company's income statement for the year ended June 30, 2014.
2. Prepare the company's statement of owner's equity for the year ended June 30, 2014. Assume that there were no contributions made by the owner during the year. 2014. Assume that there were no contributions made by the owner during the year.
3. Prepare the company's classified balance sheet in report form at June 30, 2014.
4. Journalize the closing entries.
5. Open the T-accounts using the balances from the adjusted trial balance and post the closing entries to the T-accounts.
6. Prepare the company's post-closing trail balance at June 30, 2014.