The unadjusted trial balance as of December 31, 2021, for the Bagley Consulting Company appears below. December

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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.

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Required:1. Enter the account balances in T-accounts.2. From the trial balance and information given, prepare adjusting entries and post to the accounts.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. Deferred rent revenue at year-end should be $1,200.3. Prepare an adjusted trial balance.4. Prepare closing entries.5. Prepare a post-closing trial balance.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
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Intermediate Accounting

ISBN: 978-1260481952

10th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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