Chapter 14, Problem 14.1P

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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 Debits $ 20,800 Credits 10,000 4,000 255,000 80,000 $ 32,000 117,000 46,800 31,650 Ө 13,500 300,000 50,550 Service revenue Interest revenue Rent revenue Salaries expense Depreciation expense Insurance expense Utilities expense Maintenance expense Totals 94,000 5,800 Ө 41,000 Ө Ө 25,200 21,300 $ 574,300 $ 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…

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