The unadjusted trial balance as of December 31, 2018, for theBagley Consulting Company appears below. December 31 is thecompany’s fiscal year-end.
| AccountTitle | Debits | | Credits | |
| Cash | 5,850 | | | |
| Accounts receivable | 7,000 | | | |
| Prepaid insurance | 2,800 | | | |
| Land | 195,000 | | | |
| Buildings | 52,500 | | | |
| Accumulateddepreciation—buildings | | | 21,000 | |
| Office equipment | 84,000 | | | |
| Accumulated depreciation—officeequipment | | | 33,600 | |
| Accounts payable | | | 27,800 | |
| Salaries and wages payable | | | 0 | |
| Deferred rent revenue | | | 0 | |
| Common stock | | | 200,000 | |
| Retained earnings | | | 45,600 | |
| Sales revenue | | | 77,500 | |
| Interest revenue | | | 3,600 | |
| Rent revenue | | | 4,200 | |
| Salaries and wages expense | 29,000 | | | |
| Depreciation expense | 0 | | | |
| Insurance expense | 0 | | | |
| Utility expense | 19,700 | | | |
| Maintenance expense | 17,450 | | | |
| Totals | 413,300 | | 413,300 | |
|
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, $1,400.
Accrued salaries and wages at year-end, $1,100.
Deferred rent revenue at year-end should be $650.
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.
