Required:The unadjusted trial balance as of December for the Bags Consulting Company
appears below. December is the company's reporting yearend.
From the trial balance and information given, prepare adjusting entries.
a The buildings have an estimated useful life of years with no salvage value. The company uses the straight
line depreciation method.
b The office equipment is depreciated at percent of original cost per year.
c Prepaid insurance expired during the year, $
d Accrued salaries at yearend, $
e Rent to customers who paid in advance has been provided for $
Post the beginning balances and adjusting entries into the appropriate Taccounts.
Prepare an adjusted trial balance.
Prepare closing entries.
Prepare a postclosing trial balance.
