The following unadjusted trial balance is for Montana Construction Company as of
ID: 2512493 • Letter: T
Question
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.
NO. Account Title Debit Credit
101 Cash $7,000
126 Supplies $16,000
128 Pre-paid insurance $12,600
167 Equipment $200,000
168 Accumulated depreciation – equipment $14,000
201 Accounts payable $6,800
251 Long-term notes payable $30,000
301 Stockholders’ equity $86,900
302 Dividends $12,000
401 Demolition fees earned $187,000
623 Wage expense $41,400
633 Interest expense $3,300
640 Rent expense $13,200
683 Property tax expense $9,700
684 Repairs expense $4,700
690 Utilities expense $4,800
TOTALS $324,700 $324,700
Instructions:
b) Using the worksheet, post the adjusting entries using the adjustments column and prepare the adjusted trial balance.
.
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.
Montana Construction Co, Adjustments December 31, 20X7 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Acct # Account Names Debit Credit Debit Credit Debit Credit 101 Cash $7,000 126 Supplies $16,000 128 Prepaid insurance $12,600 167 Equipment $200,000 168 Accumulated depreciation - equipment $14,000 201 Accounts payable $6,800 251 Long-term notes payable $30,000 301 Stockholders' equity $86,900 302 Dividends $12,000 401 Demolition fees earned $187,000 623 Wage expense $41,400 633 Interest expense $3,300 640 Rent expense $13,200 683 Property tax expense $9,700 684 Repair expense $4,700 690 Utilities expense $4,800 TOTALS $324,700 $324,700 $0 $0 $0 $0Explanation / Answer
Montana Construction Co, Adjustments December 31, 20X7 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Acct # Account Names Debit Credit Debit Credit Debit Credit 101 Cash $7,000.00 $7,000.00 126 Supplies $16,000.00 $8,100.00 $7,900.00 128 Prepaid insurance $12,600.00 $10,600.00 $2,000.00 167 Equipment $200,000.00 $200,000.00 168 Accumulated depreciation - equipment $14,000.00 $7,000.00 $21,000.00 201 Accounts payable $6,800.00 $6,800.00 251 Long-term notes payable $30,000.00 $30,000.00 301 Stockholders' equity $86,900.00 $86,900.00 302 Dividends $12,000.00 $12,000.00 401 Demolition fees earned $187,000.00 $187,000.00 623 Wage expense $41,400.00 $2,000.00 $43,400.00 633 Interest expense $3,300.00 $300.00 $3,600.00 640 Rent expense $13,200.00 $3,000.00 $16,200.00 683 Property tax expense $9,700.00 $550.00 $10,250.00 684 Repair expense $4,700.00 $4,700.00 690 Utilities expense $4,800.00 $800.00 $5,600.00 Interest Payable $300.00 $300.00 Wages Payable $2,000.00 $2,000.00 Rent Payable $3,000.00 $3,000.00 Utilities Payable $800.00 $800.00 Property tax Payable $550.00 $550.00 Supplies Expense $8,100.00 $8,100.00 Insurance Expenses' $10,600.00 $10,600.00 Depreciation Expenses $7,000.00 $7,000.00 TOTALS $324,700.00 $324,700.00 $32,350.00 $32,350.00 $338,350.00 $338,350.00
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