Question
Problem 2-9 (Algo) Accounting cycle; unadjusted trial balance through closing [LO2-4, 2-6, 2-8] The unadjusted trial balance as of December 31, 2024, for the
Problem 2-9 (Algo) Accounting cycle; unadjusted trial balance through closing [LO2-4, 2-6, 2-8] 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 Credits $ 11,850 7,000 2,800 195,000 52,500 $ 21,000. 84,000 33,600 27,800 0 10,200 200,000 45,600 77,500 1 Service revenue Interest revenue Rent revenue Salaries expense Depreciation expense) Insurance expense Utilities expense Maintenance expense Totals 3,600 29,000 0 19,700 17,450 $419,300 $419,300 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 cost per year. c. Prepaid insurance expired during the year, $1,400. d. Accrued salaries at year-end, $1,100 e. Rent to customers who paid in advance has been provided for $7,200.
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