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. Account Title Debits Credits Cash $ 20,800   Accounts receivable 10,000   Prepaid insurance 4,000   Land 255,000   Buildings 80,000   Accumulated depreciation—buildings   $ 32,000 Office equipment 117,000   Accumulated depreciation—office equipment   46,800 Accounts payable   31,650 Salaries payable   0 Deferred rent revenue   13,500 Common stock   300,000 Retained earnings   50,550 Service revenue   94,000 Interest revenue   5,800 Rent revenue   0 Salaries expense 41,000   Depreciation expense 0   Insurance expense 0   Utilities expense 25,200   Maintenance expense 21,300   Totals $ 574,300 $ 574,300 Information necessary to prepare the year-end adjusting entries appears below. The buildings have an estimated useful life of 50 years with no salvage value. The company uses the straight-line depreciation method. The office equipment is depreciated at 10 percent of original cost per year. Prepaid insurance expired during the year, $2,000. Accrued salaries at year-end, $1,700. Rent to customers who paid in advance has been provided for $8,300. Required: From the trial balance and information given, prepare adjusting entries. Post the beginning balances and adjusting entries into the appropriate T-accounts. Prepare an adjusted trial balance. Prepare closing entries. Prepare a post-closing trial balance.

What would be the correct entry for part b

The following are independent errors: a. In January 2019, repair costs of 9,000 were debited to the Machinery account. At the beginning of 2019, the book value of the machinery was 100,000. No residual value is expected, the remaining estimated life is 10 years, and straight-line depreciation is used. b. All purchases of materials for construction contracts still in progress have been immediately expensed. It is discovered that the use of these materials was 10,000 during 2018 and 12,000 during 2019. c. Depreciation on manufacturing equipment has been excluded from manufacturing costs and treated as a period expense. During 2019, 40,000 of depreciation was accounted for in that manner. Production was 15,000 units during 2019, of which 3,000 remained in inventory at the end of the year. Assume there was no inventory at the beginning of 2019. Required: Prepare journal entries for the preceding errors discovered during 2020. Ignore income taxes.

Crane Company sells office equipment on July 31, 2022, for $20,440 cash. The office equipment originally cost $82,640 and as of January 1, 2022, had accumulated depreciation of $38,770. Depreciation for the first 7 months of 2022 is $4,250.Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)   No. Account Titles and Explanation Debit Credit (a) Enter an account title to update depreciation to July 31 Enter a debit amount Enter a credit amount   enter an account title to update depreciation to July 31 Enter a debit amount Enter a credit amount (b) Enter an account title to record the sale of the equipment Enter a debit amount Enter a credit amount   Enter an account title to record the sale of…