Problem 4-2A (Algo) Preparing a work sheet, adjusting and closing entries, and financial statements LO C1, P1, P2 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 $57,600 on June 30 of the prior year, and the owner invested $21,000 cash during the current fiscal year. ACE CONSTRUCTION COMPANY Unadjusted Trial Balance June 38 Number Account Title 131 Cash 126 Supplies 128 Prepaid insurance 167 168 281 Equipment Accumulated depreciation-Equipment Accounts payable Debit $ 19,088 Credit 8,000 5,588 137,648 $ 24,000 5,888 es 283 Interest payable 236 Rent payable 218 wages payable 213 Property taxes payable 251 Long-term notes payable 301 V. Ace, Capital 26,088 78,688 382 V. Ace, withdrawals 29,888 403 Construction revenue 137,888 612 Depreciation expense-Equipment 2 623 Wages expense 47,000 633 Interest expense 2,860 637 Insurance expense e 640 Rent expense 12,000 652 Supplies expense 683 Property taxes expense 4,400 684 Repairs expense 2,800 698 utilities expense Totals 3,200 $ 271,400 $ 271,400 Adjustments: a. Supplies available at the end of the current fiscal year total $2,880. b. Cost of expired insurance for the current fiscal year is $3,465. c. Annual depreciation on equipment is $9,000. d. June utilities expense of $520 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $520 amount owed must be recorded. e. Employees have earned $1,100 of accrued and unpaid wages at fiscal year-end. 1. Rent expense incurred and not yet paid or recorded at fiscal year-end is $300. g. Additional property taxes of $600 have been assessed for this fiscal year but have not been paid or recorded at fiscal year-end. h. $260 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. 2a. Prepare the adjusting entries (all dated June 30). 2b. Prepare the closing entries (all dated June 30). 3a. Prepare the income statement for the year ended June 30. 3b. Prepare the statement of owner's equity for the year ended June 30. 3c. Prepare the classified balance sheet at June 30. ACE CONSTRUCTION COMPANY Work Sheet Number 101 Cash 126 Supplies 128 Prepaid insurance 167 Equipment 168 201 Accounts payable For Year Ended June 30 Unadjusted Trial Balance Adjustments Account Title Debit Credit Debit Credit Debit Adjusted Trial Balance Credit Income Statement Debit Credit $ 19,000 8,000 5,500 137,640 Accumulated depreciation-Equipment 24,000 5,800 203 Interest payable 208 Rent payable 210 Wages payable 213 Property taxes payable 251 Long-term notes payable 301 V. Ace, Capital 302 V. Ace, Withdrawals 403 Construction revenue 26,000 78,600 29,000 137,000 612 Depreciation expense-Equipment 623 Wages expense 47,000 633 Interest expense 2,860 637 Insurance expense 640 Rent expense 12,000 652 Supplies expense 683 Property taxes expense 4,400 684 Repairs expense 2,800 690 Utilities expense 3,200 Totals Net Income Totals $271,400 271,400 Balance Sheet and Statement of Owner's Equity Debit Credit 1 Record the required adjusting entry, if any. Supplies available at the end of the current fiscal year total $2,880. 2 Record the required adjusting entry, if any. Cost of expired insurance for the current fiscal year is E $3,465. Record the required adjusting entry, if any. Annual depreciation on equipment is $9,000. X Record the required adjusting entry, if any. June utilities expense of $520 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $520 amount owed must be recorded. 5 Record the required adjusting entry, if any. Employees have earned $1,100 of accrued and unpaid wages at fiscal year-end. 6 Record the required adjusting entry, if any. Rent expense incurred and not yet paid or recorded at fiscal year-end is $300. A 7 B Record the required adjusting entry, if any. Additional property taxes of $600 have been assessed for this fiscal year but have not been paid or recorded at fiscal year-end. Note Th Record the required adjusting entry, if any. $260 of accrued interest for June has not yet been paid or recorded. Journal entry worksheet 1 2 3 4 5 6 7 8 Record the required adjusting entry, if any. Supplies available at the end of the current fiscal year total $2,880. Note: Enter debits before credits. Transaction 8 General Journal Debit Credit Record entry Clear entry View general journal 1 Record the entry to close the revenue account(s). 2 Record the entry to close the expense account(s). 3 Record the entry to close the Income summary 4 account. Record the entry to close the withdrawals account. Note : = journal entry has been entered Journal entry worksheet < 1 2 3 4 Record the entry to close the revenue account(s). Note: Enter debits before credits. Date June 30 General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2A Required 2B Required 3A Required 36 Prepare the income statement for the year ended June 30. ACE CONSTRUCTION COMPANY Income Statement For Year Ended June 30 Revenues: Expenses: Total expenses Prepare the statement of owner's equity for the year ended June 30. ACE CONSTRUCTION COMPANY Statement of Owner's Equity For Year Ended June 30 V. Ace, Capital, June 30 prior year V. Ace, Capital, June 30 current year < Required 3A Required 3C > Prepare the classified balance sheet at June 30. ACE CONSTRUCTION COMPANY Balance Sheet June 30 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 $57,600 on June 30 of the prior year, and the owner invested $21,000 cash during the current fiscal year. ACE CONSTRUCTION COMPANY Unadjusted Trial Balance June 30 Number Account Title 101 Cash Debit $ 19,000 Credit 126 Supplies 128 Prepaid insurance 8,000 5,500 167 168 Equipment Accumulated depreciation-Equipment 137,640 201 Accounts payable $ 24,000 203 Interest payable 5,800 e 206 Rent payable e 218 210 wages payable e 213 251 Property taxes payable Long-term notes payable 26,000 301 V. Ace, Capital 78,680 302 V. Ace, withdrawals 29,000 423 Construction revenue 612 623 Wages Depreciation expense-Equipment es expense 137,000 e 47,000 633 interest expense 2,860 657 Insurance expense 640 Rent expense 12,000 652 Supplies expense e 683 584 Property taxes expense Repairs expense 4,400 2,800 690 utilities expense Totals 3,288 $ 271,400 $ 271,400 Adjustments: a. Supplies available at the end of the current fiscal year total $2,880. b. Cost of expired insurance for the current fiscal year is $3,465. c. Annual depreciation on equipment is $9,000. d. June utilities expense of $520 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $520 amount owed must be recorded. e. Employees have earned $1,100 of accrued and unpaid wages at fiscal year-end. 1. Rent expense incurred and not yet paid or recorded at fiscal year-end is $300. g. Additional property taxes of $600 have been assessed for this fiscal year but have not been paid or recorded at fiscal year-end h. $260 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. 2a. Prepare the adjusting entries (all dated June 30). 2b. Prepare the closing entries (all dated June 30). 3. Prepare the income statement for the year ended June 30. 3b. Prepare the statement of owner's equity for the year ended June 30 3c. Prepare the classified balance sheet at June 30.