Question 4 The unadjusted trial balance as of December 31, 2013 for the Bagel Company appears below. December 31 is the companys fiscal year-end

. Account Title Debits Credits

Cash 8,000

Accounts Receivable 9,000

Allowance for Uncollectible Accounts 50

Prepaid Insurance 3,000

Land 200,000

Buildings 50,000

Accumulated Depreciation Buildings 20,000

Equipment 100,000

Accumulated Depreciation Equipment 40,000

Accounts Payable 35,000

Salaries Payable -0-

Unearned Rent Revenue -0-

Common Stock 200,000

Retained Earnings 56,450

Sales Revenue 90,000

Interest Revenue 3,000

Rent Revenues 7,500

Salaries Expense 37,000

Bad Debt Expense -0-

Depreciation Expense -0-

Insurance Expense -0-

Utility Expense 30,000

Maintenance Expense 15,000

Totals 452,000 452,000

Complete the following steps: (a) Enter the account balances into T-accounts. (b) From the trial balance and information given, prepare adjusting entries and post the amounts to the T-accounts. (1) The buildings have an estimated useful life of 50 years with no salvage value. The company uses the straight-line depreciation method. (2) The equipment is depreciated at 10 percent of original cost per year. (3) Prepaid insurance expired during the year, $1,500. (4) It is estimated that 10% of the accounts receivable balance will be uncollectible. (5) Accrued salaries at year-end should be $1,500. (6) Unearned rent revenue at year-end should be $1,200. (c) Prepare an adjusted trial balance. (d) Prepare closing entries. (e) Prepare a post-closing trial balance. (f) Prepare an Income Statement and Balance Sheet.