Problem 4-2A Preparing a work sheet, adjusting and closing entries, and financial statements LO C3, P1, P2 The following unadjusted trial balance is for ACE CONSTRUCTION CO. as of the end of its 2017 fiscal year. The June 30, 2016, credit balance of the owner's capital account was $57,100, and the owner invested $27,000 cash in the company during the 2017 fiscal year. Credit Debit $ 16,000 7,500 5,500 142,490 208 Rent est payable 210 Wages payable ACE CONSTRUCTION CO. Unadjusted Trial Balance June 30, 2017 No. Account Title 101 Cash 126 Supplies 128 Prepaid insurance 167 Equipment 168 Accumulated depreciation-Equipment 201 Accounts payable 203 Interest 400 New 213 Property taxes payable 251 Long-term notes payable 301 V. Ace, Capital 302 V. Ace, Withdrawals 401 Construction fees earned 612 Depreciation expense-Equipment 623 Wages expense 633 Interest expense 637 Insurance expense 640 Rent expense 652 Supplies expense 683 Property taxes expense 684 Repairs expense 690 Utilities expense Totals $ 27,500 6,000 0 0 0 0 21,000 84,100 28,500 138,000 0 49,000 2,310 13,000 0 4,900 2,600 4,800 $276,600 $276,600 Adjustments: a. The supplies available at the end of fiscal year 2017 had a cost of $2,700. b. The cost of expired insurance for the fiscal year is $3,465. C. Annual depreciation on equipment is $8,200. d. The June utilities expense of $550 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $550 amount owed needs to be recorded. e. The company's employees have earned $1,200 of accrued wages at fiscal year-end. f. The 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 in the accounts. h. The long-term note payable bears interest at 12% per year. The unadjusted Interest Expense account equals the amount paid for the first 11 months of the 2017 fiscal year. The $210 accrued interest for June has not yet been paid or recorded. (The company is required to make a $5,000 payment toward the note payable during the 2018 fiscal year.) Required: 1. Prepare a 10-column work sheet for fiscal year 2017, starting with the unadjusted trial balance and including adjustments based on the additional facts. 2a. Prepare the adjusting entries. (all dated June 30, 2017). 2b. Prepare the closing entries. (all dated June 30, 2017): 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, 2017. Complete this question by entering your answers in the tabs below. WWWWWWWWWW Required Required Required Required Required Required 1 2A 2B 3A 3B 3C Prepare a 10-column work sheet for fiscal year 2017, starting with the unadjusted trial balance and including adjustments based on the additional facts. The June 30, 2016, credit balance of the owner's capital account was $57100, and the owner invested $27000 cash in the company during the 2017 fiscal year. ACE CONSTRUCTION CO. Work Sheet For Year Ended June 30, 2017 Unadjusted Trial Balance Sheet and Balance Adjustments Adjusted Trial Balance Income Statement Statement of Owner's Equity No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. $ 101 Cash 16,000 $ 16,000 $ 16,000 126 Supplies 7,500 4,800 2,700 2,700 128 Prepaid insurance 5,500 3,465 167 Equipment 142,490 168 Accumulated depreciation- 27,500 Equipment 201 Accounts payable 6,000 203 Interest payable 208 Rent payable 210 Wages payable 213 Property taxes payable 220 Current portion of Long-term notes 5,000 5,000 payable* 251 Long-term notes payable* 16,000 16,000 301 V. Ace, Capital 84,100 302 V. Ace, Withdrawals 28,500 401 Construction fees earned 138,000 612 Depreciation expense- Equipment 623 Wages expense 633 Interest expense 2,310 637 Insurance expense 640 Rent expense 13,000 652 Supplies expense 683 Property taxes expense 4,900 684 Repairs expense 2,600 690 Utilities expense 4.800 $ $ Totals $ 0 $8,265 $ 18,700 $ 21,000 0 276,600 276,600 18,700 0 Net Income Totals $ 0 $ 0 $ 18,700 $ *Using item h above, the notes payable account is reclassified into current and long-term portions for the unadjusted trial balance columns of the work sheet. 49,000 0 Required Required Required Required Required Required 1 2A 2B 3C Prepare the adjusting entries (all dated June 30, 2017). 3B View transaction list > Journal entry worksheet Required Required Required Required Required Required 1 2A 2B 3B 3C Prepare the closing entries (all dated June 30, 2017). View transaction list Journal entry worksheet Record the entry to close revenue accounts. Note: Enter debits before credits. General Journal Debit Date Jun 30 Credit Record entry View general journal Clear entry Required Required Required Required Required Required 1 2A 2B 3B 3C Prepare the income statement for the year ended June 30, 2017. ACE CONSTRUCTION CO. Income Statement For Year Ended June 30, 2017 Revenues: Expenses: Total expenses 0 0 $ Required Required Required Required Required Required 1 2A 2B 3A 3B 3C Prepare the statement of owner's equity for the year ended June 30, 2017. The June 30, 2016, credit balance of the owner's capital account was $57,100, and the owner invested $27,000 cash in the company during the 2017 fiscal year. Show less A ACE CONSTRUCTION CO. Statement of Owner's Equity For Year Ended June 30, 2017 V. Ace, Capital, June 30, 2016 0 0 V. Ace, Capital, June 30, 2017 $ 0 2A 2B Required Required Required Required Required Required 1 3A 3B 3C Prepare the classified balance sheet at June 30, 2017. ACE CONSTRUCTION CO. Balance Sheet June 30, 2017 $ 0 0 0 $ $ 0 $ 0 $ 0