The following unadjusted trial balance is for Braun Demolition Company as of the end of its April 30, 2011, fiscal year.

Required
1. Prepare a 10-column work sheet for fiscal year 2011, starting with the unadjusted trial balance and including adjustments based on these additional facts:
a. The supplies available at the end of fiscal year 2011 had a cost of $3,420.
b. The cost of expired insurance for the fiscal year is $4,095.
c. Annual depreciation on equipment is $11,000.
d. The April utilities expense of $580 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $580 amount owed needs to be recorded.
e. The company’s employees have earned $1,500 of accrued wages at fiscal year-end.
f. The rent expense incurred and not yet paid or recorded at fiscal year-end is $1,400.
g. Additional property taxes of $500 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 2011 fiscal year. The $250 accrued interest for April has not yet been paid or recorded. (The company is required to make a $5,000 payment toward the note payable during the 2012 fiscal year.)
2. Use information on the accounting adjustments and the resulting balances entered into the work sheet in part 1 to journalize the adjusting and closing entries.
3. Prepare the income statement and the statement of retained earnings for the year ended April 30, and the classified balance sheet as of April 30, 2011.
Analysis Component
4. Analyze the following separate errors and describe how each would affect the 10-column work sheet.
Explain whether the error is likely to be discovered in completing the work sheet and, if not, the effect of the error on the financial statements.
a. Assume the adjustment for expiration of the insurance coverage consisted of a credit to Prepaid Insurance for $2,405 and a debit for $2,405 to Insurance Expense.
b. When the adjusted trial balance in the work sheet is completed, assume that the $2,100 Repairs
Expense account balance is extended to the Debit column of the balance sheet columns.

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BRAUN DEMOLITION COMPANY Unadjusted Trial Balance April 30, 2011 No. 101 Cash 126 Supplies 128 Prepaid insurance 167 Equipment 168 Accumulated depreciation Equipment 201 Accounts payable 203 Interest payable 208 Rent payable 210 Wages payable 213 Property taxes payable 251 Long-term notes payable 307 Common stock 318 Retained earnings 319 Dividends 401 Demolition 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 Account Tide Debit Credit 17,000 9,500 6,500 140,460 22,000 6,000 0 0 0 25,000 44,000 37,610 25,500 140,000 0 48,000 2,750 0 15,400 0 4,400 2,100 3,000 $274,610 Totals $274,610