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 $52,400 on June 30 of the prior year, and the owner invested $28,000 cash during the current fiscal year. Credit Debit $ 18,000 9,000 5,500 133,570 $ 20,000 6,200 0 0 0 Number 101 126 128 167 168 201 203 208 210 213 251 301 302 403 612 623 633 637 640 652 683 684 690 ACE CONSTRUCTION COMPANY Unadjusted Trial Balance June 30 Account Title Cash Supplies Prepaid insurance Equipment Accumulated depreciation Equipment Accounts payable Interest payable Rent payable Wages payable Property taxes payable Long-term notes payable V. Ace, Capital V. Ace, Withdrawals Construction revenue Depreciation expense-Equipment Wages expense Interest expense Insurance expense Rent expense Supplies expense Property taxes expense Repairs expense Utilities expense Totals 23,000 80,400 31,000 136,000 0 42,000 2,530 0 14,000 0 4,200 2,200 3,600 $ 265, 600 $ 265,600 Adjustments: Adjustments: a. Supplies available at the end of the current fiscal year total $3,240. b. Cost of expired insurance for the current fiscal year is $3,465. c. Annual depreciation on equipment is $8,500. 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 $1,700 of accrued and unpaid wages at fiscal year-end. f. Rent expense incurred and not yet paid or recorded at fiscal year-end is $300. g. Additional property taxes of $800 have been assessed for this fiscal year but have not been paid or recorded at fiscal year-end. h. $230 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 2B 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. a ACE CONSTRUCTION COMPANY Work Sheet For Year Ended June 30 Adjustments Adjusted Trial Balance Income Statement Balance Sheet and Statement of Owner's Equity Debit Credit Number Account Title Debit Credit Debit Credit Debit Credit 101 126 Unadjusted Trial Balance Debit Credit $ 18,000 9,000 5,500 133,570 20.000 6.200 128 167 168 201 203 208 210 213 251 23,000 80,400 301 Cash Supplies Prepaid insurance Equipment Accumulated depreciation-Equipment Accounts payable Interest payable Rent payable Wages payable Property taxes payable Long-term notes payable V. Ace, Capital V. Ace, Withdrawals Construction revenue Depreciation expense-Equipment Wages expense Interest expense Insurance expense Rent expense Supplies expense Property taxes expense Repairs expense Utilities expense Totals 302 31,000 403 136,000 612 623 42,000 633 2,530 637 640 14.000 652 683 4.200 684 2.200 690 3.600 $ 265,600 $ 265.600 Net Income Totals Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Required 3C Prepare the adjusting entries (all dated June 30). View transaction list 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 $3,240. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Required 30 Prepare the closing entries (all dated June 30). View transaction list Journal entry worksheet 1 2 3 4 > Record the entry to close the revenue account(s). Note: Enter debits before credits. General Journal Debit Credit Date June 30 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 38 Required 30 Prepare the income statement for the year ended June 30. ACE CONSTRUCTION COMPANY Income Statement For Year Ended June 30 Revenues Expenses: Total expenses Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Required 30 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 1 Required 2A Required 2B Required 3A Required 3B Required 3C Prepare the classified balance sheet at June 30. ACE CONSTRUCTION COMPANY Balance Sheet June 30 Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 10 Required 2 Prepare a statement of owner's equity for the year. KARISE REPAIRS Statement of Owner's Equity For Year Ended December 31 C. Karise, Capital, December 31 prior year Add: Investments by owner 0 0 C. Karise, Capital, December 31 current year $ 0 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 10 Required 2 Prepare a classified balance sheet at December 31. KARISE REPAIRS Balance Sheet December 31 $ 0 0 0 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1C Required 2 Prepare the December 31 closing entries. View transaction list Journal entry worksheet 1 2 3 4 > Record the entry to close the revenue account(s). Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal