The following unadjusted trial balance is for ACE CONSTRUCTION CO. as of the end
ID: 2424798 • Letter: T
Question
The following unadjusted trial balance is for ACE CONSTRUCTION CO. as of the end of its 2015 fiscal year. The June 30, 2014, credit balance of the owner’s capital account was $51,200, and the owner invested $29,000 cash in the company during the 2015 fiscal year.
Adjustments:
The June utilities expense of $520 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $520 amount owed needs to be recorded.
Additional property taxes of $1,000 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 2015 fiscal year. The $230 accrued interest for June has not yet been paid or recorded. (The company is required to make a $4,000 payment toward the note payable during the 2016 fiscal year.)
Prepare a 10-column work sheet for fiscal year 2015, starting with the unadjusted trial balance and including adjustments based on the additional facts.
Adjusting entries (all dated June 30, 2015).
Prepare the 4 closing entries.
4. Prepare the income statement for the year ended June 30.
5.
Prepare the statement of owner's equity for the year ended June 30
6. Prepare the classified balance sheet at June 30, 2015.
The following unadjusted trial balance is for ACE CONSTRUCTION CO. as of the end of its 2015 fiscal year. The June 30, 2014, credit balance of the owner’s capital account was $51,200, and the owner invested $29,000 cash in the company during the 2015 fiscal year.
Explanation / Answer
2. Adjusting entries
3. Closing entries:
4. Income statement for the period ended June 30:
Adjusting entry sl. Account Title Debit Credit June 30 $ $ a. Supplies expense 5,120 Supplies 5,120 b. Insurance expense 3,465 Prepaid insurance 3,465 c. Depreciation expense 8,900 Accumulated depreciation - equipment 8,900 d. Utilities expense 520 Utilities expense payable 520 e. Wages expense 1,500 Wages payable 1,500 f. Rent expense 200 Rent payable 200 g. Property taxes expense 1,000 Property taxes payable 1,000 h. Interest expense 230 Interest payable 230Related Questions
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