The unadjusted trial balance as of December 31, 2018, for theBagley Consulting Company appears below. December 31 is thecompany’s fiscal year-end.
| Account Title | Debits | | Credits | |
| Cash | 15,650 | | | |
| Accounts receivable | 5,750 | | | |
| Prepaid insurance | 2,300 | | | |
| Land | 170,000 | | | |
| Buildings | 37,500 | | | |
| Accumulated depreciation—buildings | | | 15,000 | |
| Office equipment | 69,000 | | | |
| Accumulated depreciation—office equipment | | | 27,600 | |
| Accounts payable | | | 26,050 | |
| Salaries and wages payable | | | 0 | |
| Deferred rent revenue | | | 0 | |
| Common stock | | | 170,000 | |
| Retained earnings | | | 43,350 | |
| Sales revenue | | | 70,000 | |
| Interest revenue | | | 2,400 | |
| Rent revenue | | | 2,700 | |
| Salaries and wages expense | 24,000 | | | |
| Depreciation expense | 0 | | | |
| Insurance expense | 0 | | | |
| Utility expense | 17,200 | | | |
| Maintenance expense | 15,700 | | | |
| Totals | 357,100 | | 357,100 | |
|
- The buildings have an estimated useful life of 50 years with nosalvage value. The company uses the straight-line depreciationmethod.
- The office equipment is depreciated at 10 percent of originalcost per year.
- Prepaid insurance expired during the year, $1,150.
- Accrued salaries and wages at year-end, $850.
- Deferred rent revenue at year-end should be $400.
Required:
1. From the trial balance and information given, prepareadjusting entries.
2. Post the beginning balances and adjustingentries into the appropriate t-accounts.
3. Prepare an adjusted trial balance.
4. Prepare closing entries.
5. Prepare a post-closing trial balance.
