The unadjusted trial balance as of December 31, 2024, for the Bags Consulting Company appears below. December 31 is the company's reporting year-end. Account Title Cash Accounts receivable Prepaid insurance Land Buildings Accumulated depreciation-buildings Office equipment Accumulated depreciation-office equipment Accounts payable Salaries payable Deferred rent revenue Common stock Retained earnings Service revenue Interest revenue Rent revenue Salaries expense Depreciation expense Insurance expense Utilities expense Maintenance expense Totals Debits $ 20,800 10,000 4,000 255,000 80,000 117,000 4. Prepare closing entries. 5. Prepare a post-closing trial balance. 41,000 0 0 25,200 21,300 $ 574,300 Credits $ 32,000 46,800 31,650 0 13,500 300,000 50,550 94,000 5,800 $ 574,300 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, $2,000. d. Accrued salaries at year-end, $1,700. e. Rent to customers who paid in advance has been provided for $8,300. Required: 1. From the trial balance and information given, prepare adjusting entries. 2. Post the beginning balances and adjusting entries into the appropriate T-accounts. 3. Prepare an adjusted trial balance.
The unadjusted trial balance as of December 31, 2024, for the Bags Consulting Company appears below. December 31 is the company's reporting year-end. Account Title Cash Accounts receivable Prepaid insurance Land Buildings Accumulated depreciation-buildings Office equipment Accumulated depreciation-office equipment Accounts payable Salaries payable Deferred rent revenue Common stock Retained earnings Service revenue Interest revenue Rent revenue Salaries expense Depreciation expense Insurance expense Utilities expense Maintenance expense Totals Debits $ 20,800 10,000 4,000 255,000 80,000 117,000 4. Prepare closing entries. 5. Prepare a post-closing trial balance. 41,000 0 0 25,200 21,300 $ 574,300 Credits $ 32,000 46,800 31,650 0 13,500 300,000 50,550 94,000 5,800 $ 574,300 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, $2,000. d. Accrued salaries at year-end, $1,700. e. Rent to customers who paid in advance has been provided for $8,300. Required: 1. From the trial balance and information given, prepare adjusting entries. 2. Post the beginning balances and adjusting entries into the appropriate T-accounts. 3. Prepare an adjusted trial balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The unadjusted trial balance as of December 31, 2024, for the Bags Consulting Company appears below. December 31 is the
company's reporting year-end.
Account Title
Cash
Accounts receivable
Prepaid insurance
Land
Buildings
Accumulated depreciation-buildings
Office equipment
Accumulated depreciation-office equipment
Accounts payable
Salaries payable
Deferred rent revenue
Common stock
Retained earnings
Service revenue
Interest revenue
Rent revenue
Salaries expense
Depreciation expense
Insurance expense
Utilities expense
Maintenance expense
Totals
Debits
$ 20,800
10,000
4,000
255,000
80,000
117,000
41,000
0
0
25,200
21,300
$ 574,300
Credits
$ 32,000
46,800
31,650
0
13,500
300,000
50, 550
94,000
5,800
0
$ 574,300
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, $2,000.
d. Accrued salaries at year-end, $1,700.
e. Rent to customers who paid in advance has been provided for $8,300.
Required:
1. From the trial balance and information given, prepare adjusting entries.
2. Post the beginning balances and adjusting entries into the appropriate T-accounts.
3. Prepare an adjusted trial balance.
4. Prepare closing entries.
5. Prepare a post-closing trial balance.
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