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 $52,700 on June 30 of the prior year, and the owner invested $26,000 cash during the current fiscal year. ACE CONSTRUCTION COMPANY Unadjusted Trial Balance June 30 Number Account Title Credit Debit $ 17,000 101 Cash 126 Supplies 7,500 5,000 128 Prepaid insurance 167 Equipment 152,340 $ 27,000 168 Accumulated depreciation-Equipment 201 Accounts payable 6,600 203 Interest payable 0 208 Rent payable 0 210 Wages payable 0 213 0 Property taxes payable. 22 251 Long-term notes payable 201 301 V. Ace, Capital 26,000 78,700 202 V. ACE, 302 V. Ace, Withdrawals 30,500 303 Construction revenue 150,000 403 400 612 Depreciation expense-Equipment 0 623 Wages expense 48,000 633 Interest expense 2,860 637 Insurance expense 0 640 Rent expense 14,000 652 Supplies expense 0 683 Property taxes expense 4,600 684 Repairs expense 2,900 690 Utilities expense 3,600 Totals $288,300 $ 288,300 Adjustments: a. Supplies available at the end of the current fiscal year total $2,700. b. Cost of expired insurance for the current fiscal year is $3,150. c. Annual depreciation on equipment is $8,100. d. June utilities expense of $510 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $510 amount owed must be recorded. e. Employees have earned $1,200 of accrued and unpaid wages at fiscal year-end. f. Rent expense incurred and not yet paid or recorded at fiscal year-end is $200. 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. Required 1 Required 2A Required 28 Required 3A Required 3B Required 3C 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. ACE CONSTRUCTION COMPANY Work Sheet For Year Ended June 30 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Debit Credit Income Statement Debit Credit Number Account Title Debit Credit Credit 101 Cash $ 17,000 126 Supplies 7,500 5,000 128 Prepaid insurance 167 Equipment 152,340 168 Accumulated depreciation-Equipment 201 Accounts payable 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 30,500 27,000 6,600 26,000 78,700 150,000 Debit Balance Sheet and Statement of Owner's Equity Debit Credit 612 623 Wages expense Interest expense 633 637 Insurance expense 640 Rent expense 652 Supplies expense 683 684 690 Depreciation expense-Equipment Property taxes expense Repairs expense Utilities expense Totals Net Income Totals 48,000 2,860 14,000 4,600 2,900 3,600 $288,300 $ 288,300 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 $2,700. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Journal entry worksheet Journal entry worksheet Journal entry worksheet Journal entry worksheet Journal entry worksheet Journal entry worksheet Journal entry worksheet 1 2 3 4 Record the entry to close the withdrawals account. Note: Enter debits before credits. Date General Journal June 30 Clear entry Record entry Debit Credit View general journal 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 Prepare the classified balance sheet at June 30. ACE CONSTRUCTION COMPANY Balance Sheet June 30
