Magic Cleaning Services (MCS) has a fiscal year- end of December 31. As of year- end, MCS has the following unadjusted trial balance:

In addition, it has not adjusted for the following transactions:
€¢ All of the prepaid rent expired by the end of the year.
€¢ The building was purchased early this year and has a 30- year life with no residual value.
Depreciation is to be recorded for a full year on a straight- line basis.
€¢ The company provided a portion of the services related to an advance collection on December 20. It earned half of the unearned service revenue account balance in the current year.
€¢ Wages for the current year in the amount of $ 24,000 should be accrued and are set to be paid out to workers in January.
Required
a. Journalize necessary adjusting journal entries.
b. Prepare an adjusted trial balance as of December 31, 2015.

Transcribed Image Text:

Magic Cleaning Services Unadjusted Trial Balance At December 31 Account Cash Accounts Recervable Supplies Prepaid Rent Building Accounts Payable Unearned Service Revenue Common Stock Retained Earnings Service Revenue Waga Expense Utilities Expense Administrative Expense Debit Credit $430,900 159,000 111,000 2,400 90,000 45,900 98,000 100,000 619,200 48,600 6,200 16,000 Totals $863.100 863.100