In: Accounting
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 | 10,250 | |||
Accounts receivable | 6,250 | |||
Prepaid insurance | 2,500 | |||
Land | 180,000 | |||
Buildings | 42,500 | |||
Accumulated depreciation—buildings | 17,000 | |||
Office equipment | 75,000 | |||
Accumulated depreciation—office 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.
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.