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 $55,000 on June 30 of the prior year, and the owner invested $28,000 cash during the current fiscal year.

ACE CONSTRUCTION COMPANY
Unadjusted Trial Balance
June 30
Number	Account Title	Debit	Credit
101	Cash	$ 19,000
126	Supplies	8,000
128	Prepaid insurance	5,000
167	Equipment	142,710
168	Accumulated depreciationEquipment		$ 26,500
201	Accounts payable		6,000
203	Interest payable		0
208	Rent payable		0
210	Wages payable		0
213	Property taxes payable		0
251	Long-term notes payable		29,000
301	V. Ace, Capital		83,000
302	V. Ace, Withdrawals	33,500
403	Construction revenue		134,000
612	Depreciation expenseEquipment	0
623	Wages expense	46,000
633	Interest expense	3,190
637	Insurance expense	0
640	Rent expense	11,000
652	Supplies expense	0
683	Property taxes expense	4,700
684	Repairs expense	2,300
690	Utilities expense	3,100
	Totals	$ 278,500	$ 278,500

Adjustments:

1. Supplies available at the end of the current fiscal year total $2,880.
2. Cost of expired insurance for the current fiscal year is $3,150.
3. Annual depreciation on equipment is $8,200.
4. 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.
5. Employees have earned $1,500 of accrued and unpaid wages at fiscal year-end.
6. Rent expense incurred and not yet paid or recorded at fiscal year-end is $400.
7. Additional property taxes of $600 have been assessed for this fiscal year but have not been paid or recorded at fiscal year-end.
8. $290 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.