Preparing a work sheet, adjusting and closing entries, and financial statements ss following unadjusted trial balance is for Power Demolition Company as of the end of its April 30, 2008, fiscal year. The April 30, 2007, credit balance of the owner’s capital account was \($46,900\), and the owner invested \($40,000\) cash in the company during the 2008 fiscal year.

Required 

1. Prepare a 10-column work sheet for fiscal year 2008, starting with the unadjusted trial balance and including adjustments based on these additional facts.

a. The supplies available at the end of fiscal year 2008 had a cost of \($7,900.\)

b. The cost of expired insurance for the fiscal year is \($10,600.\)
c. Annual depreciation on equipment is \($7,000.\)

d. The April utilities expense of \($800\) is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The \($800\) amount owed needs to be recorded.

e. The company’s employees have earned \($2,000\) of accrued wages at fiscal year-end.

f. The rent expense incurred and not yet paid or recorded at fiscal year-end is \($3,000.\)
g. Additional property taxes of \($550\) have been assessed for this fiscal year but have not been paid or recorded in the accounts.
h. 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 2008 fiscal year. The \($300\) accrued interest for April has not yet been paid or recorded.
2. Enter the adjusting and closing entry information in the work sheet; then journalize them.
3. Prepare the income statement and the statement of owner’s equity for the year ended April 30, and the balance sheet at April 30, 2008.

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No. 3 101 Cash 4 126 Supplies POWER DEMOLITION COMPANY Unadjusted Trial Balance Account Title April 30, 2008 U Debit 7,000 16.000 Credit 5 128 Prepaid insurance 6 167 Equipment 7168 Accumulated depreciation-Equipment 8 201 Accounts payable 9203 Interest payable 10 208 Rent payable 11 210 Wages payable 12 213 Property taxes payable 13 251 Long-term notes payable 14 301 J. Bonair, Capital 15 302 J. Bonair, Withdrawals 12.600 200.000 $ 14,000 6,800 0 0 0 0 30,000 86,900 12,000 16 401 Demolition fees earned 187,000 17 612 Depreciation expense-Equipment 0 18 623 Wages expense 41,400 19 633 Interest expense 3,300 20 637 Insurance expense 0 21 640 Rent expense 22 652 Supplies expense 23 683 Property taxes expense 13,200 0 9,700 24 684 Repairs expense 4,700 26 25 690 Utilities expense Totals 4,800 $ 324,700 $ 324,700 27