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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
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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