Problem $4-2$A $($Algo$)$ Preparing a work sheet, adjusting and closing entries, and financial statements LO C$1,$ P$1,$ P$2$

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 $$52,700$ on June $30$ of the prior year, and the owner invested $$29,000$ cash during the current fiscal year.

ACE CONSTRUCTION COMPANY

Unadjusted Trial Balance

June $30$

Number Account Title Debit Credit

$101$ Cash $ $18,500$

$126$ Supplies $9,000$

$128$ Prepaid insurance $5,500$

$167$ Equipment $145,310$

$168$ Accumulated depreciation$$Equipment $ $24,000$

$201$ Accounts payable $5,800$

$203$ Interest payable $0$

$208$ Rent payable $0$

$210$ Wages payable $0$

$213$ Property taxes payable $0$

$251$ Long$-$term notes payable $29,000$

$301$ V$.$ Ace, Capital $81,700$

$302$ V$.$ Ace, Withdrawals $28,000$

$403$ Construction revenue $139,000$

$612$ Depreciation expense$$Equipment $0$

$623$ Wages expense $43,000$

$633$ Interest expense $3,190$

$637$ Insurance expense $0$

$640$ Rent expense $15,000$

$652$ Supplies expense $0$

$683$ Property taxes expense $4,400$

$684$ Repairs expense $2,900$

$690$ Utilities expense $4,700$

Totals $ $279,500$ $ $279,500$

Adjustments:

Supplies available at the end of the current fiscal year total $$3,240.$

Cost of expired insurance for the current fiscal year is $$3,465.$

Annual depreciation on equipment is $$8,600.$

June utilities expense of $$540$ is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $$540$ amount owed must be recorded.

Employees have earned $$1,900$ of accrued and unpaid wages at fiscal year$-$end.

Rent expense incurred and not yet paid or recorded at fiscal year$-$end is $$200.$

Additional property taxes of $$800$ have been assessed for this fiscal year but have not been paid or recorded at fiscal year$-$end.

$$290$ 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.

$2$a$.$ Prepare the adjusting entries $($all dated June $30).$

$2$b$.$ Prepare the closing entries $($all dated June $30).$

$3$a$.$ Prepare the income statement for the year ended June $30.$

$3$b$.$ Prepare the statement of owner's equity for the year ended June $30.$

$3$c$.$ Prepare the classified balance sheet at June $30.$Complete this question by entering your answers in the tabs below.

Required $1$Required $2$ARequired $2$BRequired $3$ARequired $3$BRequired $3$C

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 Balance Sheet and Statement of Owner's Equity

Number Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit