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 Debits $ 11,350 Credits 7,500 3,100 210,000 57,500 $ 23,000 90,000 36,000 28,500 0 10,800 220,000 46,500 80,500 4,000 0 31,000 0 0 20,700 18,150 $ 449,300 $ 449,300 Maintenance expense Totals 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, $1,550. d. Accrued salaries at year-end, $1,200. e. Rent to customers who paid in advance has been provided for $7,400. 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.
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 Debits $ 11,350 Credits 7,500 3,100 210,000 57,500 $ 23,000 90,000 36,000 28,500 0 10,800 220,000 46,500 80,500 4,000 0 31,000 0 0 20,700 18,150 $ 449,300 $ 449,300 Maintenance expense Totals 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, $1,550. d. Accrued salaries at year-end, $1,200. e. Rent to customers who paid in advance has been provided for $7,400. 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.
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
Debits
$ 11,350
Credits
7,500
3,100
210,000
57,500
$ 23,000
90,000
36,000
28,500
0
10,800
220,000
46,500
80,500
4,000
0
31,000
0
0
20,700
18,150
$ 449,300
$ 449,300
Maintenance expense
Totals
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, $1,550.
d. Accrued salaries at year-end, $1,200.
e. Rent to customers who paid in advance has been provided for $7,400.
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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