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The unadjusted trial balance of Arlington IT Services at December 31, 2025, and the data needed for the adjustments follow.

The unadjusted trial balance of Arlington IT Services at December 31, 2025, and the data needed for the adjustments follow.

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 1EA: Match the correct term with its definition. A. cost principle i. if uncertainty in a potential...
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The unadjusted trial balance of Arlington IT Services at December 31, 2025, and the data needed for the adjustments follow. View the trial balance. View the adjusting entry information. Read the requirements. 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, Arlington IT Services contracted to perform services for a client receiving $2,200 in advance. Arlington IT Services recorded this receipt of cash as Unearned Revenue. As of December 31, Arlington IT Services has completed $1,500 of the services. Date (a) Dec. 31 Accounts and Explanation c. Arlington IT Services used $500 of supplies. Date b. Arlington IT Services 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.) Date Accounts and Explanation Credit (b) Dec. 31 (c) Dec. 31 Debit Accounts and Explanation Debit Credit Debit Credit
Transcribed Image Text:The unadjusted trial balance of Arlington IT Services at December 31, 2025, and the data needed for the adjustments follow. View the trial balance. View the adjusting entry information. Read the requirements. 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, Arlington IT Services contracted to perform services for a client receiving $2,200 in advance. Arlington IT Services recorded this receipt of cash as Unearned Revenue. As of December 31, Arlington IT Services has completed $1,500 of the services. Date (a) Dec. 31 Accounts and Explanation c. Arlington IT Services used $500 of supplies. Date b. Arlington IT Services 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.) Date Accounts and Explanation Credit (b) Dec. 31 (c) Dec. 31 Debit Accounts and Explanation Debit Credit Debit Credit
Trial Balance Account Title Cash Arlington IT Services Unadjusted Trial Balance December 31, 2025 Accounts Receivable Prepaid Rent Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Salaries Payable Unearned Revenue Common Stock Dividends Service Revenue Salaries Expense Rent Expense Depreciation Expense―Equipment Advertising Expense Supplies Expense Total Balance Debit 7,800 19,500 2,300 1,200 19,900 9,100 3,400 1,300 Credit 4,400 3,200 2,200 39,100 15,600 64,500 $ 64,500 Adjusting Entry Information Adjustment data at December 31 follow: a. On December 15, Arlington IT Services contracted to perform services for a client receiving $2,200 in advance. Arlington IT Services recorded this receipt of cash as Unearned Revenue. As of December 31, Arlington IT Services has completed $1,500 of the services. b. Arlington IT Services 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. Arlington IT Services used $500 of supplies. d. Depreciation for the equipment is $400. e. Arlington IT Services received a bill for December's online advertising, $500. Arlington IT Services will not pay the bill until January. (Use Accounts Payable.) f. Arlington IT Services pays its employees on Monday for the previous week's salaries. Its employees earn $10,000 for a five-day workweek. December 31 falls on Wednesday this year. g. On October 1, Arlington IT Services agreed to provide four-months of IT services (beginning October 1) for a customer for $3,200. Arlington IT Services has completed the services every month, but payment has not yet been received and no entries have been made. Requirements Print Done 1. Journalize the adjusting entries on December 31. 2. The T-accounts, along with their unadjusted balances have been opened for you. Post the adjusting entries to the T-accounts. 3. Prepare the adjusted trial balance. 4. How will Arlington IT Services use the adjusted trial balance? X X le later Submit test mber 31, Arlington IT Services er 1.)
Transcribed Image Text:Trial Balance Account Title Cash Arlington IT Services Unadjusted Trial Balance December 31, 2025 Accounts Receivable Prepaid Rent Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Salaries Payable Unearned Revenue Common Stock Dividends Service Revenue Salaries Expense Rent Expense Depreciation Expense―Equipment Advertising Expense Supplies Expense Total Balance Debit 7,800 19,500 2,300 1,200 19,900 9,100 3,400 1,300 Credit 4,400 3,200 2,200 39,100 15,600 64,500 $ 64,500 Adjusting Entry Information Adjustment data at December 31 follow: a. On December 15, Arlington IT Services contracted to perform services for a client receiving $2,200 in advance. Arlington IT Services recorded this receipt of cash as Unearned Revenue. As of December 31, Arlington IT Services has completed $1,500 of the services. b. Arlington IT Services 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. Arlington IT Services used $500 of supplies. d. Depreciation for the equipment is $400. e. Arlington IT Services received a bill for December's online advertising, $500. Arlington IT Services will not pay the bill until January. (Use Accounts Payable.) f. Arlington IT Services pays its employees on Monday for the previous week's salaries. Its employees earn $10,000 for a five-day workweek. December 31 falls on Wednesday this year. g. On October 1, Arlington IT Services agreed to provide four-months of IT services (beginning October 1) for a customer for $3,200. Arlington IT Services has completed the services every month, but payment has not yet been received and no entries have been made. Requirements Print Done 1. Journalize the adjusting entries on December 31. 2. The T-accounts, along with their unadjusted balances have been opened for you. Post the adjusting entries to the T-accounts. 3. Prepare the adjusted trial balance. 4. How will Arlington IT Services use the adjusted trial balance? X X le later Submit test mber 31, Arlington IT Services er 1.)
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