Reference no: EM132662778

Question - The trial balance of Unity Company for December, 31, 1991. Includes, among other items, the following account balances.

Debits Credits

Office supplies on hand Birr 6000

Prepaid rent Birr 25,200

Buildings Birr. 200,000

Accumulated depreciation-building Birr 33,250

Salaries expense Birr 124,000

Unearned delivery fees Birr 4,000

Additional Data -

Part of the supplies represented by the birr, 6000 balance of the office supplies on land account have been consumed. An inventory count of the supplies actually on hand at Dec.31 totaled to Birr 2,400.00.

On May 1 of the current year, a rental payment of Birr 25,200.00 was made for 12 months of rent, it was debited to prepaid rent.

The annual depreciation for the building s account less an estimated salvage value of Birr 10,000.00. the estimated useful lives of the buildings are 40 years each.

The salaries expense of Birr, 124,000.00 does not include birr 6,000.00 of unpaid salaries earned since the last payday.

One fourth of the unearned delivery fees have been earned by Dec. 31

Delivery services of birr 600.00 were performed for customer, but a bill has not yet been sent.

Required - Prepare the adjusting journal entries for December 31, assuming adjusting entries are prepared only of year-end based on the adjusted balances shown in the accumulated depreciation-building account, how many years has Unity Company owned the building.