50.1K

Verified Solution

Link Copied!

The following unadjusted trial balance is for Ace Construction Company at its June $30$ current fiscal year$-$end. The credit balance of the V$.$ Ace, Capital account was $$54,100$ on June $30$ of the prior year, and the owner invested $$25,000$ cash during the current fiscal year.

ACE CONSTRUCTION COMPANYUnadjusted Trial BalanceJune $30$NumberAccount TitleDebitCredit$101$Cash$ $18,000126$Supplies$9,000128$Prepaid insurance$5,500167$Equipment$137,080168$Accumulated depreciation$$Equipment$$$$27,000201$Accounts payable$5,600203$Interest payable$0208$Rent payable$0210$Wages payable$0213$Property taxes payable$0251$Long$-$term notes payable$22,000301$V$.$ Ace, Capital$79,100302$V$.$ Ace, Withdrawals$31,000403$Construction revenue$132,000612$Depreciation expense$$Equipment$0623$Wages expense$41,000633$Interest expense$2,420637$Insurance expense$0640$Rent expense$11,000652$Supplies expense$0683$Property taxes expense$4,000684$Repairs expense$2,700690$Utilities expense$4,000$Totals$ $265,700$$ $265,700$

Adjustments:

Supplies available at the end of the current fiscal year total $$3,240.$

Cost of expired insurance for the current fiscal year is $$3,465.$

Annual depreciation on equipment is $$8,000.$

June utilities expense of $$530$ is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $$530$ amount owed must be recorded.

Employees have earned $$1,100$ of accrued and unpaid wages at fiscal year$-$end.

Rent expense incurred and not yet paid or recorded at fiscal year$-$end is $$200.$

Additional property taxes of $$600$ have been assessed for this fiscal year but have not been paid or recorded at fiscal year$-$end.

$$220$ of accrued interest for June has not yet been paid or recorded.

Required:

$1.$ Prepare a $10-$column work sheet for the current fiscal year, starting with the unadjusted trial balance and including adjustments using the above additional information.

$2$a$.$ Prepare the adjusting entries $($all dated June $30).$

$2$b$.$ Prepare the closing entries $($all dated June $30).$

$3$a$.$ Prepare the income statement for the year ended June $30.$

$3$b$.$ Prepare the statement of owner's equity for the year ended June $30.$

$3$c$.$ Prepare the classified balance sheet at June $30.$

Answer & Explanation Solved by verified expert

See Answer