The following unadjusted trial balance is for Ace Construction Co. as of the end of Its...
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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 $53,660, and the owner Invested $35,000 cash in the company during the 2015 fiscal year. ACE CONSTRUCTION CO. Unadjusted Trial Balance June 30, 2015 No. Account Title Debit Credit 101 $ 18,500 Cash 126 Supples Prepaid insurance Equipment Accumulated depreciation-Equipment 9,900 128 7.200 132.000 167 $ 26,250 6.800 168 Accounts payable 203 Interest payable Rent payable Wages payable Property taxes payable Long-term notes payable V. Ace, Capital V. Ace, Withdrawals 201 208 210 213 251 25,000 301 88,660 302 33,000 401 Construction fees earned 132,100 612 Depreclation expense-Equipment 623 46,860 Wages expense Interest expense 633 2.750 637 Insurance expense 640 Rent expense 12,000 652 Supplles expense 683 Property taxes expense Repairs expense 690 Utilities expense 7,800 684 2,910 5,890 Totals $278,810 $278,810 Adjustments: a. The supplies avallable at the end of fiscal year 2015 had a cost of $3,300. b. The cost of expired Insurance for the fiscal year is $3,800. c. Annual deprecilation on equipment is $8,400. d. The June utilities expense of $650 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $650 amount owed needs to be recorded. e. The company's employees have eaned $1,800 of accrued wages at fiscal year-end. f. The rent expense incurred and not yet pald or recorded at fiscal year-end Is $500. g. Additional property taxes of $1,000 have been assessed for this fiscal year but have not been paid or recorded In the accounts. h. The Jong-term note pavable bears Interest at 12% per vear The unadlusted Interest Expense account h. The long-term note payable bears Interest at 12% per year. The unadjusted Interest Expense account equals the amount pald for the first 11 months of the 2015 fiscal year. The $250 accrued Interest for June has not yet been pald or recorded. (The company is required to make a $5,000 payment toward the note payable during the 2016 fiscal year.) Required: 1. Prepare a 10-column work sheet for fiscal year 2015, starting with the unadjusted trial balance and including adjustments based on the additional facts. The June 30, 2014. credit balance of the owner's capital account was $53,660, and the owner invested $35,000 cash in the company during the 2015 fiscal year. ACE CONSTRUCTION CO. Work Sheet For Year Ended June 30, 2015 Unadjusted Trial Balance Sheet and Statement Balance Adjustments Adjusted Trial Balance Income Statement of Owner's Equity No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. 101 Cash 18,500 $ 18,500 $ 18,500 126 Supplies 9.900 6,600 3,300 3,300 128 Prepaid insurance 7,200 3,800 3,400 3.400 167 Equipment 132,000 132,000 132,000 168 Accumulated depreciation-Equipment 26.250 8,400 34,650 34,650 201 Accounts payable 6,800 650 7,450 7,450 203 Interest payable 250 250 250 208 Rent payable 500 500 500 210 Wages payable 1,800 1,800 1,800 213 Property taxes payable 1,000 1,000 251 Long-term notes payable 25,000 25,000 25,000 301 V. Ace, Capital 88.660 88,660 88,660 302 V. Ace. Withdrawals 33,000 33,000 33,000 401 Construction fees earned 132, 100 132, 100 132, 100 612 Depreciation expense-Equipment 8,400 8,400 8,400 623 Wages expense 46,860 1,800 48,660 48,660 633 Interest expense 2,750 250 3,000 3,000 637 Insurance expense 3,800 3,800 3,800 640 Rent expense 12,000 500 12,500 12,500 652 Supplies expense 6,600 6,600 6,600 683 Property taxes expense 7,800 1,000 7,800 7,800 684 Repairs expense 2,910 2.910 2,910 690 Utilities expense 5,890 650 6,540 6,540 Totals $ 278,810 $ 278,810 $ 23,000 $ 23,000 $ 290,410 $ 291,410 100.210 132. 100 190.200 158,310 Net Income 31,890 31,890 Totals 132, 100 $ 132, 100 $ 190,200 $ 190,200 2.1 Prepare the adjusting entries. Adjusting entries (all dated June 30, 2015). view transaction list view general journal Transation General Journal Debit Credit a. Supplies expense 6,600 Supplies 6,600 b. Insurance expense 3,800 Prepaid insurance 3,800 C. Depreciation expense-equipment 8,400 Accumulated depreciation-equipment 8,400 d. Utilities expense 650 Accounts payable 650 Wages expense 1,800 e. Wages payable 1,800 f. Rent expense 500 Rent payable 500 g. Property taxes expense 1,000 Property taxes payable 1,000 Interest expense 31,890 Interest payable 250 b. 2.2 Prepare the closing entries. Closing entries (all dated June 30, 2015): view transaction list view general journal Date General Journal Debit Credit Jun 30 Construction fees earned 132, 100 Income summary 132, 100 Jun 30 Income summary 100,210 Depreciation expense-equipment 8,400 Wages expense 48,660 Interest expense 3,000 Property taxes expense 7,800 Insurance expense 3,800 Rent expense 12,500 Supplies expense 6,600 Repairs expense 2,910 Utilities expense 6,540 Jun 30 V. Ace, Capital 132, 100 3. Prepare the income statement for the year ended June 30, 2015. ACE CONSTRUCTION CO. Income Statement For Year Ended June 30, 2015 Revenues: Construction fees earned $ 132, 100 Expenses: Depreciation expense-Equipment 8,400 Wages expense 48,660 Interest expense 3,000 Property taxes expense 7,800 Insurance expense 3,800 Rent expense 12,500 Supplies expense 6,600 Repairs expense 2,910 Utilities expense 6,540 Total expenses 100,210 $ 31,890 %24 4. Prepare the statement of owner's equity for the year ended June 30, 2015. ACE CONSTRUCTION CO. Statement of Owner's Equity For Year Ended June 30, 2015 V. Ace, Capital, June 30, 2014 V. Ace, Capital, June 30, 2015 5. Prepare the classified balance sheet at June 30, 2015. ACE CONSTRUCTION CO. Balance Sheet June 30, 2015 Assets Current assets Cash $ 18,500 Supplies 3,300 Prepaid insurance 3,400 Equipment 132,000 Accumulated depreciation-Equipment (34,650) $4 122,550 122,550 Liabilities Current liabilities Accounts payable 7,450 Rent payable 500 Wages payable 1,800 9,750 9,750 Equity V. Ace, Capital 88,660 98,410 %24 %24 %24 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 $53,660, and the owner Invested $35,000 cash in the company during the 2015 fiscal year. ACE CONSTRUCTION CO. Unadjusted Trial Balance June 30, 2015 No. Account Title Debit Credit 101 $ 18,500 Cash 126 Supples Prepaid insurance Equipment Accumulated depreciation-Equipment 9,900 128 7.200 132.000 167 $ 26,250 6.800 168 Accounts payable 203 Interest payable Rent payable Wages payable Property taxes payable Long-term notes payable V. Ace, Capital V. Ace, Withdrawals 201 208 210 213 251 25,000 301 88,660 302 33,000 401 Construction fees earned 132,100 612 Depreclation expense-Equipment 623 46,860 Wages expense Interest expense 633 2.750 637 Insurance expense 640 Rent expense 12,000 652 Supplles expense 683 Property taxes expense Repairs expense 690 Utilities expense 7,800 684 2,910 5,890 Totals $278,810 $278,810 Adjustments: a. The supplies avallable at the end of fiscal year 2015 had a cost of $3,300. b. The cost of expired Insurance for the fiscal year is $3,800. c. Annual deprecilation on equipment is $8,400. d. The June utilities expense of $650 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $650 amount owed needs to be recorded. e. The company's employees have eaned $1,800 of accrued wages at fiscal year-end. f. The rent expense incurred and not yet pald or recorded at fiscal year-end Is $500. g. Additional property taxes of $1,000 have been assessed for this fiscal year but have not been paid or recorded In the accounts. h. The Jong-term note pavable bears Interest at 12% per vear The unadlusted Interest Expense account h. The long-term note payable bears Interest at 12% per year. The unadjusted Interest Expense account equals the amount pald for the first 11 months of the 2015 fiscal year. The $250 accrued Interest for June has not yet been pald or recorded. (The company is required to make a $5,000 payment toward the note payable during the 2016 fiscal year.) Required: 1. Prepare a 10-column work sheet for fiscal year 2015, starting with the unadjusted trial balance and including adjustments based on the additional facts. The June 30, 2014. credit balance of the owner's capital account was $53,660, and the owner invested $35,000 cash in the company during the 2015 fiscal year. ACE CONSTRUCTION CO. Work Sheet For Year Ended June 30, 2015 Unadjusted Trial Balance Sheet and Statement Balance Adjustments Adjusted Trial Balance Income Statement of Owner's Equity No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. 101 Cash 18,500 $ 18,500 $ 18,500 126 Supplies 9.900 6,600 3,300 3,300 128 Prepaid insurance 7,200 3,800 3,400 3.400 167 Equipment 132,000 132,000 132,000 168 Accumulated depreciation-Equipment 26.250 8,400 34,650 34,650 201 Accounts payable 6,800 650 7,450 7,450 203 Interest payable 250 250 250 208 Rent payable 500 500 500 210 Wages payable 1,800 1,800 1,800 213 Property taxes payable 1,000 1,000 251 Long-term notes payable 25,000 25,000 25,000 301 V. Ace, Capital 88.660 88,660 88,660 302 V. Ace. Withdrawals 33,000 33,000 33,000 401 Construction fees earned 132, 100 132, 100 132, 100 612 Depreciation expense-Equipment 8,400 8,400 8,400 623 Wages expense 46,860 1,800 48,660 48,660 633 Interest expense 2,750 250 3,000 3,000 637 Insurance expense 3,800 3,800 3,800 640 Rent expense 12,000 500 12,500 12,500 652 Supplies expense 6,600 6,600 6,600 683 Property taxes expense 7,800 1,000 7,800 7,800 684 Repairs expense 2,910 2.910 2,910 690 Utilities expense 5,890 650 6,540 6,540 Totals $ 278,810 $ 278,810 $ 23,000 $ 23,000 $ 290,410 $ 291,410 100.210 132. 100 190.200 158,310 Net Income 31,890 31,890 Totals 132, 100 $ 132, 100 $ 190,200 $ 190,200 2.1 Prepare the adjusting entries. Adjusting entries (all dated June 30, 2015). view transaction list view general journal Transation General Journal Debit Credit a. Supplies expense 6,600 Supplies 6,600 b. Insurance expense 3,800 Prepaid insurance 3,800 C. Depreciation expense-equipment 8,400 Accumulated depreciation-equipment 8,400 d. Utilities expense 650 Accounts payable 650 Wages expense 1,800 e. Wages payable 1,800 f. Rent expense 500 Rent payable 500 g. Property taxes expense 1,000 Property taxes payable 1,000 Interest expense 31,890 Interest payable 250 b. 2.2 Prepare the closing entries. Closing entries (all dated June 30, 2015): view transaction list view general journal Date General Journal Debit Credit Jun 30 Construction fees earned 132, 100 Income summary 132, 100 Jun 30 Income summary 100,210 Depreciation expense-equipment 8,400 Wages expense 48,660 Interest expense 3,000 Property taxes expense 7,800 Insurance expense 3,800 Rent expense 12,500 Supplies expense 6,600 Repairs expense 2,910 Utilities expense 6,540 Jun 30 V. Ace, Capital 132, 100 3. Prepare the income statement for the year ended June 30, 2015. ACE CONSTRUCTION CO. Income Statement For Year Ended June 30, 2015 Revenues: Construction fees earned $ 132, 100 Expenses: Depreciation expense-Equipment 8,400 Wages expense 48,660 Interest expense 3,000 Property taxes expense 7,800 Insurance expense 3,800 Rent expense 12,500 Supplies expense 6,600 Repairs expense 2,910 Utilities expense 6,540 Total expenses 100,210 $ 31,890 %24 4. Prepare the statement of owner's equity for the year ended June 30, 2015. ACE CONSTRUCTION CO. Statement of Owner's Equity For Year Ended June 30, 2015 V. Ace, Capital, June 30, 2014 V. Ace, Capital, June 30, 2015 5. Prepare the classified balance sheet at June 30, 2015. ACE CONSTRUCTION CO. Balance Sheet June 30, 2015 Assets Current assets Cash $ 18,500 Supplies 3,300 Prepaid insurance 3,400 Equipment 132,000 Accumulated depreciation-Equipment (34,650) $4 122,550 122,550 Liabilities Current liabilities Accounts payable 7,450 Rent payable 500 Wages payable 1,800 9,750 9,750 Equity V. Ace, Capital 88,660 98,410 %24 %24 %24
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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