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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. Information necessary
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. 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-IIne depreciation method. b. The office equipment is depreciated at 10 percent of original cost per year. c. Prepald insurance expired during the year, $1,300. d. Accrued salarles at year-end, $1,000. e. Rent to customers who paid in advance has been provided for $7,000. Requlred: 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. \begin{tabular}{|l|l|l|l|l|} \hline Required 1 & Required 2 & Required 3 & Required 4 & Required 5 \\ \hline \end{tabular} Post the beginning balances and adjusting entries into the appropriate T-accounts. Note: Enter the letter of the transaction in the column next to the amount. \begin{tabular}{|l|r|r|r|} \hline \multicolumn{3}{|c|}{ Prepaid Insurance } \\ \hline Beginning balance & 2,600 & \\ \hline & & & \\ \hline & & & \\ \hline Ending balance & 1,300 & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Land } \\ \hline Beginning balance & 185,000 & \\ \hline & & & \\ \hline & & & \\ \hline Ending balance & 185,000 & & \\ \hline & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Office Equipment } \\ \hline Beginning balance & 78,000 & & \\ \hline & & & \\ \hline & & & \\ \hline Ending balance & 78,000 & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{3}{|c|}{ Accounts Payable } \\ \hline Beginning balance & & \\ \hline & & \\ \hline & & \\ \hline Ending balance & & \\ \hline \end{tabular} \begin{tabular}{|l|r|r|} \hline \multicolumn{2}{|c|}{ Accumulated Depreciation-Office Equipment } \\ \hline Beginning balance & & 78,000 \\ \hline & & 7,800 \\ \hline & & \\ \hline Ending balance & & 85,800 \\ \hline & & \\ \hline Beginning balance & & 1,000 \\ \hline & & \\ \hline & & \\ \hline Ending balance & & \\ \hline \end{tabular}
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