Need the highlighted a) and c) answered please. Part 2: The following unadjusted

Question

Need the highlighted a) and c) answered please.

Part 2: 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. DebitCredit $7,000 $16,000 $12,600 $200,000 NO Acount TitleDebit 101 Cash 126 Supplies 128 Pre-paid insurance 167 Equipment 168 Accumulated depreciation equipment 201 Accounts payable 251 Long-term notes payable 301 Stockholders' equity 302 Dividends 401 Demolition fees earned 623 Wage expense 633 Interest expense 640 Rent expense 683 Property tax expense 684 Repairs expense 690 Utilities expense TOTALS $14,000 $6,800 $30,000 $86,900 $12,000 $187,000 $41,400 $3,300 $13,200 $9,700 $4,700 $4,800 $324,700 $324,700 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. 1- 2. 3. 4. 5. 6. 7. 8. Instructions: a) Journalize the following adjusting entries as of fiscal year-end December 31, 20x7 b) Using the worksheet, post the adjusting entries using the adjustments column and prepare the adjusted trial balance. c) Create financial statements. Namely, i) the income statement, li) statement of stockholders' equity, and il) the balance sheet for 20x7

Explanation / Answer

Adjusting entries 1 Supplies expense 8100 (16000-7900)              Supplies 8100 2 Insurance expense 10600               Prepaid insurance 10600 3 Depreciation expens e 7000              Accumulated depreciation equipment 7000 4 Utilities expense 800              Accounts payable 800 5 Wages expense 2000             Wages payable 2000 6 Rent expense 3000             Accounts payable 3000 7 Property tax expense 550             Accounts payable 550 8 Interest expense 300               Interest payable 300

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