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 $26,000 cash during the current fiscal year. ACE CONSTRUCTION COMPANY Unadjusted Trial Balance June 30 Number Account Title Debit Credit 101 Cash $ 20,000 126 Supplies 7,500 128 Prepaid insurance 5,500 167 Equipment 150,200 168 Accumulated depreciation Equipment $ 21,500 201 Accounts payable 6,600 203 Interest payable 0 208 Rent payable 0 210 Wages payable 213 Property taxes payable 251 Long-term notes payable 30,000 V. Ace, Capital 83,600 302 V. Ace, withdrawals 28,000 Construction revenue 140,000 612 Depreciation expense-Equipment 623 Wages expense 43,000 633 Interest expense 3,300 637 Insurance expense 640 Rent expense 13,000 652 Supplies expense 0 683 Property taxes expense 4,500 684 Repairs expense 2,000 690 Utilities expense 4,700 Totals $ 281,700 $ 281,700 0 0 301 403 0 0 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 $3,465. c. Annual depreciation on equipment is $8,600. d. June utilities expense of $530 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $530 amount owed must be recorded. e. Employees have earned $1,500 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. 9. Additional property taxes of $900 have been assessed for this fiscal year but have not been paid or recorded at fiscal year-end. h. $300 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