Magic Cleaning Services (MCS) has a fiscal year-end of December 31. It is the first year of operations. At of year-end, MCS has the following unadjusted trial balance:

Addition, it has not adjusted for the following transactions:

• All of the prepaid rent expired by the end of the year.
• The building was purchased early this year and has a 30-year life with no residual value. Depreciation is to be recorded for a full year on a straight-line basis.
• The company provided a portion of the services related to an advance collection on December 20. It performed one-half of the services to be performed in the current year.
• Wages for the current year in the amount of $24,000 should be accrued and are set to be paid out to workers in January.

Required:
a. Journalize necessary adjusting journal entries. Omit explanations.
b. Prepare an adjusted trial balance as of December 31, 2018.

Transcribed Image Text:

Magıc Cleaning Services Unadjusted Trial Balance At December 31 Account Debit Credit Cash $430 900 Accounts Receivabte 158000 Supp es 111,000 Prepa d Rent 2,400 Buildng 90,000 $ 45 900 Accounts Payable Unearned Serve Revenue 98 000 Common Stock 100 000 Retained Earn ngs Servce Revenue 619 200 Wage Expense 48,600 Utäit es Expense 6,200 Administrative Expense 16,000 Totals $863 100 $863,100