The following unadjusted trial balance is for Ace Construction Co. at its June 30 current fiscal year-end. The credit balance of the V. Ace, Capital account was $53,660 on June 30 of the prior year, and the owner invested $35,000 cash during the current fiscal year.

Required

1. Prepare and complete a 10-column work sheet for the current fiscal year, starting with the unadjusted trial balance and including adjustments using the following additional information.

a. Supplies available at the end of the current fiscal year total $3,300.
b. Cost of expired insurance for the current fiscal year is $3,800.
c. Annual depreciation on equipment is $8,400.
d. 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 must be recorded.
e. Employees have earned $1,800 of accrued and unpaid wages at fiscal year-end.
f. Rent expense incurred and not yet paid 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 at fiscal year-end.
h. $250 accrued interest for June has not yet been paid or recorded.

2. Using information from the completed 10-column work sheet in part 1, journalize the adjusting entries and the closing entries.
3. Prepare the income statement and the statement of owner’s equity for the year ended June 30 and the classified balance sheet at June 30.

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Unadjusted Trial Balance June 30 No. Account Title 101 Cash 126 Supplies 128 Prepald insurance 167 Equipment 168 Accumulated depreclation-Equipment 201 Accounts payable 203 Interest payable 208 Rent payable 210 Wages payable 213 Property taxes payable 251 Long-term notes payable 301 V. Ace, Capital 302 V. Ace, Withdrawals 403 Construction revenue 612 Depreclation expense-Equipment 623 Wages expense 633 Interest expense 637 Insurance expense 640 Rent expense 652 Supplies expense 683 Property taxes expense 684 Repalrs expense 690 Utilities expense Totals Debit Credit $ 18,500 9,900 7,200 132,000 $ 26,250 6,800 25,000 88,660 33,000 132,100 46,860 2,750 12,000 7,800 2,910 5,890 $278,810 $278,810