The following unadjusted trial balance is for Montana 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 $46,900, and the stockholders invested $40,000 cash in the company during 20x7.

NO. Account Title Debit Credit

101 Cash $7,000

126 Supplies $16,000

128 Pre-paid insurance $12,600

167 Equipment $200,000

168 Accumulated depreciation equipment $14,000

201 Accounts payable $6,800

251 Long-term notes payable $30,000

301 Stockholders equity $86,900

302 Dividends $12,000

401 Demolition fees earned $187,000

623 Wage expense $41,400

633 Interest expense $3,300

640 Rent expense $13,200

683 Property tax expense $9,700

684 Repairs expense $4,700

690 Utilities expense $4,800

TOTALS $324,700 $324,700

Instructions:

a) Journalize the following adjusting entries as of fiscal year-end December 31, 20x7.

Adjustments needed:

The supplies available at the end of fiscal 20x7 year are at a cost of $7,900.

The cost of expired insurance for the fiscal year is $10,600.

Annual depreciation on equipment is $7,000; no other depreciation adjustment was made in 20x7.

The December utilities expense of $800 is not included in the adjusted trial balance because the bill arrived after the trial balance was prepared. The $800 amount owed needs to be recorded.

The company's employees have earned $2000 in accrued wages for the fiscal year.

The rent expense not yet paid or recorded in the fiscal year is $3000.

Additional property taxes of $550 have been assessed for the fiscal year, but have not yet been paid or recorded in the accounts.

The $300 accrued interest for December has not yet been paid and reported.

Montana Construction Co, Adjustments December 31, 20X7
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