Required: 1. From the trial balance and information given, prepare adjusting entries. 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, $1,000. d. Accrued salaries at year-end, $1,500. e. Rent to customers who paid in advance has been provided for $6,300. 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. 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 Debits Credits $ 8,000 9,000 3,000 200,000 50,000 $ 20,000 100,000 40,000 35,050 0 7,500 200,000 56,450 90,000 3,000 0 Rent revenue Salaries expense 37,000 Depreciation expense 0 Insurance expense 0 Utilities expense 30,000 Maintenance expense 15,000 Totals $452,000 $452,000
Required: 1. From the trial balance and information given, prepare adjusting entries. 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, $1,000. d. Accrued salaries at year-end, $1,500. e. Rent to customers who paid in advance has been provided for $6,300. 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. 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 Debits Credits $ 8,000 9,000 3,000 200,000 50,000 $ 20,000 100,000 40,000 35,050 0 7,500 200,000 56,450 90,000 3,000 0 Rent revenue Salaries expense 37,000 Depreciation expense 0 Insurance expense 0 Utilities expense 30,000 Maintenance expense 15,000 Totals $452,000 $452,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Transcribed Image Text:Required:
1. From the trial balance and information given, prepare adjusting entries.
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, $1,000.
d. Accrued salaries at year-end, $1,500.
e. Rent to customers who paid in advance has been provided for $6,300.
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.
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
Debits
Credits
$ 8,000
9,000
3,000
200,000
50,000
$ 20,000
100,000
40,000
35,050
0
7,500
200,000
56,450
90,000
3,000
0
Rent revenue
Salaries expense
37,000
Depreciation expense
0
Insurance expense
0
Utilities expense
30,000
Maintenance expense
15,000
Totals
$452,000
$452,000
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education