The unadjusted trial balance as of December 31, 2024, for the Bags Consulting Company appears below. December 31 is the company’s reporting year-end.

Required:
1. From the trial balance and information given, prepare adjusting entries.
a. The buildings have an estimated useful life of 50 years with no salvage value. The company uses the straight-line depreciation method.
b. The office equipment is depreciated at 10 percent of original cost per year.
c. Prepaid insurance expired during the year, $1,000.
d. Accrued salaries at year-end, $1,500.
e. Rent to customers who paid in advance has been provided for $6,300.
2. Post the beginning balances and adjusting entries into the appropriate T-accounts.
3. Prepare an adjusted trial balance.
4. Prepare closing entries.
5. Prepare a post-closing trial balance.

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Account Title Cash Accounts receivable Prepaid insurance Land Buildings Accumulated depreciation-buildings Office equipment Accumulated depreciation-office equipment Accounts payable Salaries payable Deferred rent revenue Common stock Retained earnings Service revenue Interest revenue Rent revenue Salaries expense Depreciation expense Insurance expense Utilities expense Maintenance expense Totals Debits $ 8,000 9,000 3,000 200,000 50,000 100,000 37,000 0 0 30,000 15,000 $452,000 Credits $ 20,000 40,000 35,050 0 7,500 200,000 56,450 90,000 3,000 0 $452,000