The following unadjusted trial balance is for Groenke Construction Company as of year-end for the December 31, 20x7 fiscal year. The December 31, 20x6 credit balance of the stockholders equity account is $50,500, and the stockholders invested $45,000 cash in the company during 20x7.

1. Account Title Debit Credit

101 Cash $15,000

126 Supplies $8,500

128 Pre-paid insurance $11,200

167 Equipment $175,000

168 Accumulated depreciation equipment $19,000

201 Accounts payable $9,250

251 Long-term notes payable $45,000

301 Shareholders equity $106,900

302 Dividends $15,750

401 Construction Revenue $153,000

623 Wage expense $61,800

633 Interest expense $6,250

640 Rent expense $15,750

683 Property tax expense $12,500

684 Repairs expense $6,100

690 Utilities expense $5,300

TOTALS $333,150 $333,150

Instructions:

Use the template provided to:

1. Journalize the following adjusting entries as of fiscal year-end December 31, 20x7.
2. Post the adjusting entries to an unadjusted trial balance and prepare the adjusted trial balance.
3. Create financial statements, namely: i) the income statement, ii) statement of stockholders equity, and iii) the balance sheet for 20x7.

Adjustments needed:

1. The supplies available at the end of the fiscal year 20x7 are at a cost of $5,700.
2. The company's employees have earned $3.500 in accrued wages for the fiscal year.
3. The cost of expired insurance for the fiscal year is $8,600.
4. The rent expense not yet paid or recorded in the fiscal year is $2,250.
5. Annual depreciation on equipment is $8,000; no other depreciation adjustment was made in 20x7.
6. The $450 accrued interest for December has not yet been paid and reported.
7. Additional property taxes of $625 have been assessed for the fiscal year but have not yet been paid or recorded in the accounts.
8. The December utilities expense of $425 is not included in the adjusted trial balance, because the bill arrived after the trial balance was prepared. The $425 amount owed needs to be recorded.