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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.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 25E: Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and...
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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 31,000 Accumulated depreciation-buildings Office equipment 114,000 Accumulated depreciation-office equipment 45,600 Accounts payable 31,300 Salaries payable 0 Deferred rent revenue Common stock 290,000 Retained earnings 50, 100 Service revenue 92,500 Interest revenue 5,600 Rent revenue 7,200 40,000 Salaries expense Depreciation expense 0 Insurance expense 0 Utilities expense 24,700 Maintenance expense 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 depreciation 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.
Transcribed Image Text: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 31,000 Accumulated depreciation-buildings Office equipment 114,000 Accumulated depreciation-office equipment 45,600 Accounts payable 31,300 Salaries payable 0 Deferred rent revenue Common stock 290,000 Retained earnings 50, 100 Service revenue 92,500 Interest revenue 5,600 Rent revenue 7,200 40,000 Salaries expense Depreciation expense 0 Insurance expense 0 Utilities expense 24,700 Maintenance expense 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 depreciation 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.
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