CHECK FIGURES: 1. Adjusted trial balance columns = $447,890; 3. Profit = $64,130; Total assets = $130,300 This unadjusted trial balance is for Challenger Construction at the end of its fiscal year, September 30, 2020. The beginning balance of the owner's capital account was $46,000 and the owner invested another $25,000 cash in the company during the year. Challenger Construction Trial Balance.xisx B C Challenger Construction 2 Unadjusted Trial Balance September 30, 2020 Unadjusted Trial Balance 6 No. Account OF. CF 7 101 Cash $ 22,000 8 126 Supplies 17.200 9 128 Prepaid insurance 9,600 10 149 Land not currently used in operations 50,000 11 167 Equipment 106,000 12 168 Accumulated depreciation. Equipment $ 40.500 13 191 Copyright 6:000 14 201 Accounts payable 8,100 15 203 Interest payable 16 210 Wages payable 17 251 Long-term notes payable 50.000 18 301 Chris Challenger, capital 71,000 19 302 Chris Challenger, withdrawals 68,000 20 401 Construction revenue 255,620 21 612 Depreciation expense, equipment 22 623 Wages expense 96,000 23 633 Interest expense 1.200 24 637 Insurance expense 25 640 Rent expense 26,400 26 652 Supplies expense 27 683 Business taxes expense 10,000 28 684 Repairs expense 5,020 29 690 Utilities expense 7.800 30 Totals $ 425,220 5 425,220Required 1. Prepare a 10-column work sheet for fiscal 2020, starting with the unadjusted trial balance and including these additional facts: a. The inventory of supplies at the end of the year had a cost of $3,200. b. The cost of expired insurance for the year is $8,400. c. Annual depreciation of the equipment is $17,600. d. The September utilities expense was not included in the trial balance because the bill arrived after it was prepared. Its $750 amount needs to be recorded. Page 290 e. The company's employees have earned $4,200 of accrued wages. f. The interest expense of $120 for September has not yet been paid or recorded. 2. Use the work sheet to prepare the adjusting and closing entries. 3. Prepare an income statement, a statement of changes in equity, and a classified balance sheet. $16,000 of the long-term note payable is to be paid by September 30, 2021. Analysis Component: Analyze the following potential errors and describe how each would affect the 10-column work sheet. Explain whether the error is likely to be discovered in completing the work sheet and, if not, the effect of the error on the financial statements. a. The adjustment to record used supplies was credited to Supplies for $3,200 and debited the same amount to Supplies Expense. b. When completing the adjusted trial balance in the work sheet, the $22,ooo cash balance was incorrectly entered in the Credit column
