The unadjusted trial balance as of December 31, 2018, for the Bagley Consulting Company appears below. December 31 is the company’s fiscal year-end.

The unadjusted trial balance as of December 31, 2018, for the Bagley Consulting Company appears below. December 31 is the company’s fiscal year-end.

Account TitleDebits Credits Cash7,900   Accounts receivable9,250   Prepaid insurance3,700   Land240,000   Buildings72,500   Accumulated depreciation—buildings  29,000 Office equipment108,000   Accumulated depreciation—office equipment  43,200 Accounts payable  30,600 Salaries and wages payable  0 Deferred rent revenue  0 Common stock  270,000 Retained earnings  49,200 Sales revenue  89,500 Interest revenue  5,200 Rent revenue  6,600 Salaries and wages expense38,000   Depreciation expense0   Insurance expense0   Utility expense23,700   Maintenance expense20,250   Totals523,300 523,300 

  1. The buildings have an estimated useful life of 50 years with no salvage value. The company uses the straight-line depreciation method.
  2. The office equipment is depreciated at 10 percent of original cost per year.
  3. Prepaid insurance expired during the year, $1,850.
  4. Accrued salaries and wages at year-end, $1,550.
  5. Deferred rent revenue at year-end should be $1,050.

Required:

1. From the trial balance and information given, prepare the adjusting entries.

2. Post the beginning balances and adjusting entries into the appropriate t-accounts.

3. Prepare adjusted trial balance.

4. Prepare closing entries.

5. Prepare post-closing trial balance.

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