Part 2: The following unadjusted trial balance is for Groenke Construction Company as of year-end for the December 31, 20x7 fiscal year. The December 31, 20x6 credit balance of the stockholders' equity account is $61,900, and the stockholders invested $45,000 cash in the company during 20x7 1. Account Title Debit Credit $15,000 Cash 101 $8,500 126 Supplies $11,200 128 Pre-paid insurance $175,000 Equipment 167 Accumulated depreciation equipment $19,000 168 Accounts payable $9,250 201 $45,000 Long-term notes payable 251 Shareholders' equity $106,900 301 $15,750 302 Dividends Construction Revenue $153,000 401 $61,800 Wage expense 623 $6,250 633 Interest expense $15,750 Rent expense 640 $12,500 Property tax expense 683 Repairs expense $6,100 684 Utilities expense $5,300 690 $333,150 $333,150 TOTALS Instructions: Use the template provided to: 1. Journalize the following adjusting entries as of fiscal year-end December 31, 20x7. 2. Post the adjusting entries to an unadjusted trial balance and prepare the adjusted trial balance 3. Create financial statements, namely: ) the income statement, ii) statement of stockholders' equity, and ii) the balance sheet for 20x7 Adjustments needed: 1. The supplies available at the end of the fiscal year 20x7 are at a cost of $5,700 2. The company's employees have earned $3.500 in accrued wages for the fiscal year. 3. The cost of expired insurance for the fiscal year is $8,600. 4. The rent expense not yet paid or recorded in the fiscal year is $2,250. 5. Annual depreciation on equipment is $8,000; no other depreciation adjustment was made in 20x7 6. The $450 accrued interest for December has not yet been paid and reported 7. Additional property taxes of $625 have been assessed for the fiscal year but have not yet been paid or recorded in the accounts. 8. The December utilities expense of $425 is not included in the adjusted trial balance, because the bill arrived after the trial balance was prepared. The $425 amount owed needs to be recorded. 9. The company paid dividends of $15,575 to its shareholders on record. Groenke Construction Company BE SURE TO CREATE A FINANCIAL STATEMENTS FROM THE ADJUSTED TRIAL BALANCE Company Name|l Groenke Construction Co, Adjustments December 31, 20X7 Adjust Debit Credit Income Statement Account Names date] 21 Revenues List names Li:xpenses 4 List names 0 T Total expenss Net income Groenke Construction Co, Adjust ments December 31, 20X7 Unadjustad Trlal Balance Adjusted Trlal Balance Debit Credit Adjustments Account Names 01Cash 126 Supplies Apct i# Credit Debit Credit Debit $15,000 $8,500 Company Name Statement of Stockholders' Equity date] 128 Pregaid insurance $11,200 $175,000 167 Equipment 168 Accumulated depreciation - equipment 201 Accounts payable 251 Long-term notes payable 301 Stockhalders' equity 302 Dividends 401 Demolition fees earned $19,000 $9,250 $45,000 $105,900 Stockholders' Equity. [date $15,750 $153,000 Plus: Additional sharekolder investment. 523 Wake expnse $51,800 S,25D $15,750 Net incomc 0 433 Interest axpense 540 Rentexpense S83 Property t xense Repair expense 5s0 Utilities expense Lss: Dividends Stockholders' Equity, dat $12,500 S,10D $5,300 Company Name Balance Sheet TOTALS 5333,150 $333,150 50 Datel $0 $0 50 Liabilitics & Stockholders' Equity Asscts Tatal Liahilities Total stockholders' equity Tatal liabilitics and staclcholdars' equity Tulal Assels S
