Question

Required: 1. Prepare a 10-column work sheet for fiscal year 2017, starting with the unadjusted trial balance and including adjustments based on the additional facts. 2a. Prepare the adjusting entries. (all dated June 30, 2017). 2b. Prepare the closing entries. (all dated June 30, 2017): 3a. Prepare the income statement for the year ended June 30. 3b. Prepare the statement of owner's equity for the year ended June 30. 3c. Prepare the classified balance sheet at June 30, 2017.

ACE CONSTRUCTION CO. Unadjusted Trial Balance June 30, 2017 No. Account Title Debit Credit 101 Cash $ 17,500 126 Supplies 10,000 128 Prepaid insurance 6,500 167 Equipment 148,840 168 Accumulated depreciation—Equipment $ 28,000 201 Accounts payable 5,200 203 Interest payable 0 208 Rent payable 0 210 Wages payable 0 213 Property taxes payable 0 251 Long-term notes payable 26,000 301 V. Ace, Capital 80,400 302 V. Ace, Withdrawals 26,000 401 Construction fees earned 146,000 612 Depreciation expense—Equipment 0 623 Wages expense 50,000 633 Interest expense 2,860 637 Insurance expense 0 640 Rent expense 12,000 652 Supplies expense 0 683 Property taxes expense 4,800 684 Repairs expense 2,500 690 Utilities expense 4,600 Totals $ 285,600 $ 285,600 Adjustments: The supplies available at the end of fiscal year 2017 had a cost of $3,600. The cost of expired insurance for the fiscal year is $4,095. Annual depreciation on equipment is $9,000. The June utilities expense of $510 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $510 amount owed needs to be recorded. The company’s employees have earned $1,500 of accrued wages at fiscal year-end. The rent expense incurred and not yet paid or recorded at fiscal year-end is $200. Additional property taxes of $700 have been assessed for this fiscal year but have not been paid or recorded in the accounts. 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 2017 fiscal year. The $260 accrued interest for June has not yet been paid or recorded. (The company is required to make a $6,000 payment toward the note payable during the 2018 fiscal year.)

Answer 1