The unadjusted trial balance as of December 31, 2021, for the Bagley Consulting Company appears below. December 31 is thecompany's reporting year-end.Account TitleDebits CreditsCash12,500Accounts receivable9,750Prepaid insurance3,900Land250,000Buildings77,50031,000Accumulated depreciation-buildingsOffice equipment114,000Accumulated depreciation-office equipment45,600Accounts payable31,300Salaries payable0Deferred rent revenueCommon stock290,000Retained earnings50, 100Service revenue92,500Interest revenue5,600Rent revenue7,20040,000Salaries expenseDepreciation expense0Insurance expense0Utilities expense24,700Maintenance expense20,950Totals553,300553,300Information necessary to prepare the year-end adjusting entries appears below.a. The buildings have an estimated useful life of 50 years with no salvage value. The company uses the straight-line depreciationmethod.b. The office equipment is depreciated at 10 percent of original cost per year.c. Prepaid insurance expired during the year, $1,950.d. Accrued salaries at year-end, $1,650.e. Deferred rent revenue at year-end should be $1,150.

1. Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…

The unadjusted trial balance as of December 31, 2021, for the Bagley Consulting Company appears below. December 31 is the company's reporting year-end. Account Title Debits Credits Cash 12,500 Accounts receivable 9,750 Prepaid insurance 3,900 Land 250,000 Buildings 77,500 Accumulated depreciation-buildings 31,000 Office equipment 114,000 Accumulated depreciation-office equipment 45,600 Accounts payable 31,300 Salaries payable 0 Deferred rent revenue 0 Common stock 290,000 Retained earnings 50, 100 Service revenue 92,500 Interest revenue 5,600 7,200 Rent revenue Salaries expense Depreciation expense 40,000 0 Insurance expense 0 Utilities expense Maintenance expense 24,700 20,950 Totals 553,300 553,300 Information necessary to prepare the year-end adjusting entries appears below. a. The buildings have an estimated useful life of 50 years with no salvage value. The company uses the straight-line depreciatio method. b. The office equipment is depreciated at 10 percent of original cost per year. c. Prepaid insurance expired during the year, $1,950. d. Accrued salaries at year-end, $1,650. e. Deferred rent revenue at year-end should be $1,150.

The unadjusted trial balance as of December 31, 2021, for the Bagley Consulting Company appears below. December 31 is the company's reporting year-end. Account Title Debits Credits Cash 12,500 Accounts receivable 9,750 Prepaid insurance 3,900 Land 250,000 Buildings 77,500 Accumulated depreciation-buildings 31,000 Office equipment 114,000 Accumulated depreciation-office equipment 45,600 Accounts payable 31,300 Salaries payable 0 Deferred rent revenue 0 Common stock 290,000 Retained earnings 50, 100 Service revenue 92,500 Interest revenue 5,600 7,200 Rent revenue Salaries expense Depreciation expense 40,000 0 Insurance expense 0 Utilities expense Maintenance expense 24,700 20,950 Totals 553,300 553,300 Information necessary to prepare the year-end adjusting entries appears below. a. The buildings have an estimated useful life of 50 years with no salvage value. The company uses the straight-line depreciatio method. b. The office equipment is depreciated at 10 percent of original cost per year. c. Prepaid insurance expired during the year, $1,950. d. Accrued salaries at year-end, $1,650. e. Deferred rent revenue at year-end should be $1,150.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Dhapa
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