Preparing a work sheet, adjusting and closing entries, and financial statements The following unadjusted trial balance is for Ace Construction Co. as of the end of its 2008 fiscal year.
The June 30, 2007, credit balance of the owner’s capital account was \($53,660\), and the owner invested \($35,000\) cash in the company during the 2008 fiscal year.

Required 

1. Prepare a 10-column work sheet for fiscal year 2008, starting with the unadjusted trial balance and including adjustments based on these additional facts.

a. The supplies available at the end of fiscal year 2008 had a cost of \($3,300.\) 

b. The cost of expired insurance for the fiscal year is \($3,800.\)
c. Annual depreciation on equipment is \($8,400.\) 

d. The June utilities expense of \($650\) is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The \($650\) amount owed needs to be recorded.

e. The company’s employees have earned \($1,800\) of accrued wages at fiscal year-end.

f. The rent expense incurred and not yet paid or recorded at fiscal year-end is \($500.\)
g. Additional property taxes of \($1,000\) have been assessed for this fiscal year but have not been paid or recorded in the accounts.
h. The long-term note payable bears interest at 12% per year. The unadjusted Interest Expense account equals the amount paid for the first 11 months of the 2008 fiscal year. The \($250\) accrued interest for June has not yet been paid or recorded.
2. Use the work sheet to enter the adjusting and closing entries; then journalize them.
3. Prepare the income statement and the statement of owner’s equity for the year ended June 30 and the balance sheet at June 30, 2008.

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P ACE CONSTRUCTION CO. Unadjusted Trial Balance June 30, 2008 No. Account Title Debit Credit 3 101 Cash S 18,500 4 126 Supplies 128 Prepaid insurance 6 167 Equipment 7 168 Accumulated depreciation-Equipment 8 201 Accounts payable 9 203 Interest payable 10 208 Rent payable. 11 210 Wages payable 12 213 Property taxes payable 13 251 Long-term notes payable 14 301 V. Ace, Capital 15 302 V. Ace, Withdrawals 9,900 7,200 132,000 26,250 6,800 0 0 0 0 25,000 88,660 33,000 16 401 Construction fees earned 132.100 17 612 Depreciation expense-Equipment 0 20 637 Insurance expense 18 623 Wages expense 19 633 Interest expense 21 640 Rent expense 22 652 Supplies expense 23 683 Property taxes expense 24 684 Repairs expense 25 690 Utilities expense Totals 26 27 46,860 2,750 0 12,000 0 7,800 2,910 5,890 $ 278,810 $ 278,810 1001