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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. Account Title

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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. Account Title Debits Credits Cash 7,950 Accounts receivable 6,000 2,400 175,000 40,000 Prepaid insurance Land Buildings Accumulated depreciation-buildings office equipment Accumulated depreciation-office equipment Accounts payable Salaries payable Deferred rent revenue 16,000 72,000 28,800 26,400 C Common stock 170,000 43,800 71,500 2,600 3,000 Retained earnings Service revenue Interest revenue Rent revenue Salaries expense Depreciation expense Insurance expense Utilities expense 25,000 0 17,700 Maintenance expense 16,050 362,100 362,100 Totals 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, $1,200. d. Accrued salaries at year-end, $900. e. Deferred rent revenue at year-end should be $450. 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. BAGLEY CONSULTING COMPANY Post-Closing Trial Balance Account Title Debits Credits 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 Totals 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. Account Title Debits Credits Cash 7,950 Accounts receivable 6,000 2,400 175,000 40,000 Prepaid insurance Land Buildings Accumulated depreciation-buildings office equipment Accumulated depreciation-office equipment Accounts payable Salaries payable Deferred rent revenue 16,000 72,000 28,800 26,400 C Common stock 170,000 43,800 71,500 2,600 3,000 Retained earnings Service revenue Interest revenue Rent revenue Salaries expense Depreciation expense Insurance expense Utilities expense 25,000 0 17,700 Maintenance expense 16,050 362,100 362,100 Totals 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, $1,200. d. Accrued salaries at year-end, $900. e. Deferred rent revenue at year-end should be $450. 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. BAGLEY CONSULTING COMPANY Post-Closing Trial Balance Account Title Debits Credits 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 Totals

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