Question

The following unadjusted trial balance is for Ace Construction Co. as of the end of its 2019 fiscal year. The June 30, 2018, credit balance of the owner's capital account was $57,600, and the owner invested $25,000 cash in the company during the 2019 fiscal year. No. Credit Debit 17,500 8,500 5,500 143, 350 $ 21,000 5, 800 ACE CONSTRUCTION CO. Unadjusted Trial Balance June 30, 2019 Account Title 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 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 25,000 82, 600 34,500 144, 000 0 43,000 2, 750 13,000 4, 300 2,700 3, 300 $ 278, 400 $ 278, 400 Adjustments: a. The supplies available at the end of fiscal year 2019 had a cost of $3,060. b. The cost of expired insurance for the fiscal year is $3,465. c. Annual depreciation on equipment is $8,100. d. The June utilities expense of $560 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $560 amount owed needs to be recorded. e. The company's employees have earned $1,600 of accrued and unpaid 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 $900 have been assessed for this fiscal year but have not been paid or recorded in the accounts. h. The $250 accrued interest for June on the long-term notes payable has not yet been paid or recorded.

Answer 1

Ace Construction Co. Adjusting Enteries Trans. Particulars a. Supplies Expense a/c Dr. To Supplies (Supplies expensed)8500 - 3060 Debit in $ Credit in $ 5440 5440 Dr. 3465 Insurance Expense a/c To Prepaid Insurance (Insurance expensed) 3465 8100 Depreciation Expense a/c Dr. To Accum. Depre - Equip. (To record depreciation) 8100 Dr. 560 Utilities Expense a/c To Accounts Payable (Expense accrued) 560 e. Dr. 1600 Wages Expense a/c To Wages Payable (Wages accrued) 1600 Dr. 300 Rent Expense a/c To Rent Payable (Rent accrued) 300 900 Property Taxes Expense a/c D To Property Taxes payable (Expense accrued) 900 h. Dr. Interest Expense a/c To Interest Payable (Interest accrued) 250 Closing Enteries Date Debit in $ Credit in $ 30.6.2019 Income Summary a/c Dr. 89665 To Depreciation Expense - Equip. 8100 To Wages Expense 44600 To Interest Expense 3000 To Insurance Expense 3465 To Rent Expense 13300 To Supplies Expense 5440 To Property Taxes Expense 5200 To Repairs Expense 2700 To Utilities Expense 3860 (Expense accounts closed) 144000 30.6.2019 Construction Fees Earned a/c Dr. To Income Summary (Revenue accounts closed) 144000 Dr. 54335 30.6.2019 Income Summary a/c To V.Ace, Capital (Profits transferred) 54335 Dr. 34500 30.6.2019 V.Ace, Capital a/c To V.Ace, Withdrawals (Drawings recorded) 34500

Worksheet For the period ending 30.6.2019 No. Particulars 101 Cash 126 Supplies 128 Prepaid Insurance 167 Equipment 168 Accum. Depre - Equip. 201 Accounts Payable 203 Interest Payable 208 Rent Payable 210 Wages Payable 213 Property Taxes payable 251 Long Term Notes Payable 301 V.Ace, Capital 302 V.Ace, Withdrawals 401 Construction Fees Earned 612 Depreciation Expense - Equip. 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 Net Income Totals Unadjusted Adjustments Adjusted Income Statement Balance sheet Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 17500 17500 17500 8500 5440 3060 3060 5500 3465 2035 2035 143350 143350 143350 21000 8100 29100 29100 5800 560 6360 6360 250 250 250 300 300 300 1600 1600 1600 900 900 900 25000 25000 25000 82600 82600 102435 34500 34500 144000 144000 144000 8100 8100 8100 43000 1600 44600 44600 2750 250 3000 3000 3465 3465 3465 13000 300 13300 13300 5440 5440 4300 900 5200 5200 2700 2700 2700 3300 560 3860 3860 278400 278400 2061520615290110 290110 89665 144000 165945 165945 54335 144000 144000 5440

144000 Statement of Income For the period ending 31.8.2021 Construction Fees Earned Less: Depreciation Expense - Equip. Wages Expense Interest Expense Insurance Expense Rent Expense Supplies Expense Property Taxes Expense Repairs Expense Utilities Expense Net Income 8100 44600 3000 3465 13300 5440 5200 2700 3860 89665 54335 Statement of Owner's Equity For the period ending 31.8.2021 V.Ace, Capital Add:Capital Introduced Add:Net Income 57600 25000 54335 136935 -34500 102435 V.Ace, Withdrawals

Balance sheet As at 30.6.2019 Assets Amounts in $ Amounts in $ Liabilities Amounts in $ Amounts in $ Current Assets Current Liabilities Cash 17500 Accounts Payable 6360 Supplies 3060 Interest Payable 250 Prepaid Insurance 2035 22595 Rent Payable 300 Wages Payable 1600 Non Current Assets Property Taxes payable 900 9410 Equipment 143350 Accum. Depre-Equip. -29100 114250 Non Current Liabilities Long Term Notes Payable 25000 Owner's Equity V.Ace, Capital 136845 Total Liabilities & Equity 102435 136845 Total Assets