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The unadjusted trial balance as of December 31, 2021, for the Bagley Consulting Company appears below. December 31 is the companys reporting year-end. Account Title
The unadjusted trial balance as of December 31, 2021, for the Bagley Consulting Company appears below. December 31 is the companys reporting year-end. Account Title Debits Credits Cash 10,250 Accounts receivable 6,250 Prepaid insurance 2,500 Land 180,000 Buildings 42,500 Accumulated depreciationbuildings 17,000 Office equipment 75,000 Accumulated depreciationoffice equipment 30,000 Accounts payable 26,750 Salaries payable 0 Deferred rent revenue 0 Common stock 180,000 Retained earnings 44,250 Service revenue 73,000 Interest revenue 2,800 Rent revenue 3,300 Salaries expense 26,000 Depreciation expense 0 Insurance expense 0 Utilities expense 18,200 Maintenance expense 16,400 Totals 377,100 377,100 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, $1,250. d. Accrued salaries at year-end, $950. e. Deferred rent revenue at year-end should be $500. Required: 1. From the trial balance and information given, prepare adjusting entries. 2. Post the beginning balances and adjusting entries into the appropriate T-accounts. 3. Prepare an adjusted trial balance. 4. Prepare closing entries. 5. Prepare a post-closing trial balance.
The unadjusted trial balance as of December 31, 2021, for the Bagley Consulting Company appears below. December 31 is the companys reporting year-end.
Account Title
Debits
Credits
Cash
10,250
Accounts receivable
6,250
Prepaid insurance
2,500
Land
180,000
Buildings
42,500
Accumulated depreciationbuildings
17,000
Office equipment
75,000
Accumulated depreciationoffice equipment
30,000
Accounts payable
26,750
Salaries payable
0
Deferred rent revenue
0
Common stock
180,000
Retained earnings
44,250
Service revenue
73,000
Interest revenue
2,800
Rent revenue
3,300
Salaries expense
26,000
Depreciation expense
0
Insurance expense
0
Utilities expense
18,200
Maintenance expense
16,400
Totals
377,100
377,100
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, $1,250.
d. Accrued salaries at year-end, $950.
e. Deferred rent revenue at year-end should be $500.
Required:
1. From the trial balance and information given, prepare adjusting entries.
2. Post the beginning balances and adjusting entries into the appropriate T-accounts.
3. Prepare an adjusted trial balance.
4. Prepare closing entries.
5. Prepare a post-closing trial balance.
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Coping With Financial Accounting 1 For Senior Secondary Schools And Undergraduate Studies
Authors: Festus Chukwunwendu Akpotohwo ,Stella Alfred-Jaja Wellington-Igonibo ,Cletus Ogeibiri
1st Edition
3659611034, 978-3659611032
