KANEOHE RENOVATIONS

Unadjusted Trial Balance

December 31, 2019

Cash $4,000 Accounts receivable 1,800 Construction supplies 1,360 Prepaid insurance 1,940 Investment in Sierra, Inc., common shares (long-term) 8,000 Trucks 38,000 Accumulated depreciation, trucks $15,000 Construction equipment 6,400 Accumulated depreciation, construction equipment 2,300 Building 103,000 Accumulated depreciation, building 38,600 Land 24,000 Franchise 35,000 Unearned renovation service revenue 1,950 Notes payable, long term 83,400 Capital, Mary Jones 66,075 Withdrawals, Mary Jones 32,000 Renovation architecture fees 14,800 Renovation services revenue 96,000 Gas, oil, and repairs expense 4,825 Interest expense 7,650 Renovation wages expense 34,050 Office salaries expense 16,100 TOTAL $318,125 $318,125

(1) Set-up the T-ACCTS for the items in the trial balance above plus these additional accounts:

Wages Payable

Depreciation Expense, Building

Depreciation Expense, Construction Equipment

Depreciation Expense, Trucks

Insurance Expense

Construction Supplies Expense

Enter the trial balance amounts in the T-ACCTS.

(2) Use the information that follows to prepare and record adjusting journal entries.

(a) Insurance premiums of $1,115 expired during the year.

(b) An inventory count shows $1,232 of unused construction supplies on hand.

(c) Depreciation on the construction equipment, $1,625.

(d) Depreciation on the trucks, $9,400.

(e) Depreciation on the building, $4,900.

(f) Of the $1,950 balance in the Unearned Renovation Service Revenue account, $725 was earned by the year-end.

(g) Accrued renovation architecture fees earned but unrecorded at year-end totaled $2,100.

(h) There were $960 of earned but unrecorded wages for an employee at the year-end.

(3) Post the adjusting entries to T-Accounts.

(4) Prepare an adjusted trial balance.

(5) In good form, prepare an income statement, a statement of owners equity, and a balance sheet. A $10,400 installment on the long-term note payable is due within one year.