Problem 4-2A (Algo) Preparing a work sheet, adjusting and closing entries, and financial statements LO C1, P1, P2 The following unadjusted trial balance is for Ace Construction Company at its June 30 current fiscal year-end. The credit balance of the V. Ace, Capital account was $52,400 on June 30 of the prior year, and the owner invested $28,000 cash during the current fiscal year. ACE CONSTRUCTION COMPANY Unadjusted Trial Balance June 30 Number Account Title 101 Cash Debit $ 18,000 Credit 126 Supplies 128 Prepaid insurance 167 168 201 Equipment Accumulated depreciation-Equipment Accounts payable 9,000 5,500 133,570 $ 20,000 203 Interest payable 6,200 0 208 Rent payable 0 210 Wages payable 0 213 251 Property taxes payable Long-term notes payable 0 23,000 301 V. Ace, Capital 80,400 302 V. Ace, Withdrawals. 31,000 403 Construction revenue. 136,000 612 Depreciation expense-Equipment 0 623 Wages expense 42,000 633 Interest expense 2,530 637 Insurance expense 0 640 Rent expense. 14,000 652 Supplies expense 0 683 Property taxes expense 4,200 684 Repairs expense 2,200 690 Utilities expense 3,600 Totals $ 265,600 $ 265,600 Adjustments: Adjustments: a. Supplies available at the end of the current fiscal year total $3,240. b. Cost of expired insurance for the current fiscal year is $3,465. c. Annual depreciation on equipment is $8,500. d. 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 must be recorded. e. Employees have earned $1,700 of accrued and unpaid wages at fiscal year-end. f. Rent expense incurred and not yet paid or recorded at fiscal year-end is $300. g. Additional property taxes of $800 have been assessed for this fiscal year but have not been paid or recorded at fiscal year-end. h. $230 of accrued interest for June has not yet been paid or recorded. Required: 1. Prepare a 10-column work sheet for the current fiscal year, starting with the unadjusted trial balance and including adjustments using the above additional information. 2a. Prepare the adjusting entries (all dated June 30). 2b. Prepare the closing entries (all dated June 30). 3a. Prepare the income statement for the year ended June 30. 3b. Prepare the statement of owner's equity for the year ended June 30. 3c. Prepare the classified balance sheet at June 30. Required 1 Required 2A Required 2B Required 3A Required 3B Required 3C Prepare a 10-column work sheet for the current fiscal year, starting with the unadjusted trial balance and including adjustments using the above additional information. ACE CONSTRUCTION COMPANY Work Sheet For Year Ended June 30 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Number 101 Account Title Debit Credit Debit Credit Debit Credit Debit Credit Cash $ 18,000 126 Supplies 9,000 128 Prepaid insurance 5,500 167 Equipment 133,570 168 Accumulated depreciation-Equipment 20,000 201 Accounts payable 6,200 203 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 23,000 80,400 31,000 136,000 612 Depreciation expense-Equipment 623 Wages expense 42,000 633 Interest expense 2,530 637 Insurance expense 640 Rent expense 14,000 652 Supplies expense 683 Property taxes expense 684 Repairs expense 690 Utilities expense Totals 4,200 2,200 3,600 $ 265,600 $ 265,600 Net Income Totals Balance Sheet and Statement of Owner's Equity Debit Credit Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Required 3C Prepare the adjusting entries (all dated June 30). View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 Record the required adjusting entry, if any. Supplies available at the end of the current fiscal year total $3,240. Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry Clear entry View general journal < Required 1 Required 2B > Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Required 3C Prepare the closing entries (all dated June 30). View transaction list Journal entry worksheet < 1 2 3 4 Record the entry to close the revenue account(s). Note: Enter debits before credits. Date June 30 General Journal Debit Credit Record entry Clear entry View general journal < Required 2A Required 3A > Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Required 3C Prepare the income statement for the year ended June 30. ACE CONSTRUCTION COMPANY Income Statement For Year Ended June 30 Revenues: Expenses: Total expenses < Required 2B Required 3B > Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Required 3C Prepare the statement of owner's equity for the year ended June 30. ACE CONSTRUCTION COMPANY Statement of Owner's Equity For Year Ended June 30 V. Ace, Capital, June 30 prior year V. Ace, Capital, June 30 current year < Required 3A Required 3C > Required 1 Required 2A Required 2B Required 3A Required 3B Required 3C Prepare the classified balance sheet at June 30. ACE CONSTRUCTION COMPANY Balance Sheet June 30 < Required 3B Required 3C >