This unadjusted trial balance is for Challenger Construction at the end of its fiscal year, September $30,2023.$ The beginning balance of the owner$$s capital account was $$46,000$ and the owner invested another $$25,000$ cash in the company during the year.

Challenger Construction

Unadjusted Trial Balance

September $30,2023$

Unadjusted

Trial Balance

No$.$ Account Dr$.$ Cr$.$

$101$ Cash $ $22,000$

$126$ Supplies $17,200$

$128$ Prepaid insurance $9,600$

$149$ Land not currently used in operations $50,000$

$167$ Equipment $106,000$

$168$ Accumulated depreciation, Equipment $ $40,500$

$191$ Copyright $6,000$

$201$ Accounts payable $8,100$

$203$ Interest payable $0$

$210$ Wages payable $0$

$251$ Long$-$term notes payable $50,000$

$301$ Chris Challenger, capital $71,000$

$302$ Chris Challenger, withdrawals $68,000$

$401$ Construction revenue $255,620$

$612$ Depreciation expense, equipment $0$

$623$ Wages expense $96,000$

$633$ Interest expense $1,200$

$637$ Insurance expense $0$

$640$ Rent expense $26,400$

$652$ Supplies expense $0$

$683$ Business taxes expense $10,000$

$684$ Repairs expense $5,020$

$690$ Utilities expense $7,800$

Totals $ $425,220$ $ $425,220$

Additional information:

The inventory of supplies at the end of the year had a cost of $$3,200.$

The cost of expired insurance for the year is $$8,400.$

Annual depreciation of the equipment is $$17,600.$

The September utilities expense was not included in the trial balance because the bill arrived after it was prepared. Its $$750$ amount needs to be recorded.

The company$$s employees have earned $$4,200$ of accrued wages.

The interest expense of $$120$ for September has not yet been paid or recorded.

Required:

$1.$ Prepare a $10-$column work sheet for fiscal $2023,$ starting with the unadjusted trial balance and including the above additional facts:

$2.$ Use the work sheet to prepare the adjusting and closing entries.

$3-$a$.$ Prepare an income statement for the year September $30,2023.$

$3-$b$.$ Prepare a statement of changes in equity for the year September $30,2023.$

$3-$c$.$ Prepare a balance sheet for the year September $30,2023.$ $$16,000$ of the long$-$term note payable is to be paid by September $30,2024.$Prepare an income statement for the year September $30,2023.$

Question $3$ of $3$ Total $3$ o