The following unadjusted trial balance is for ACE CONSTRUCTIONCO. as of the end of its 2015 fiscal year. The June 30, 2014,credit balance of the ownerâs capital account was $51,200, and theowner invested $29,000 cash in the company during the 2015 fiscalyear.
ACE CONSTRUCTION CO.
Unadjusted Trial Balance
June 30, 2015
No.
Account Title
Debit
Credit
101
Cash
$
19,000
126
Supplies
8,000
128
Prepaid insurance
5,500
167
Equipment
145,570
168
Accumulated depreciationâEquipment
$ 23,000
201
Accounts payable
5,000
203
Interest payable
0
208
Rent payable
0
210
Wages payable
0
213
Property taxes payable
0
251
Long-term notes payable
23,000
301
V. Ace, Capital
80,200
302
V. Ace, Withdrawals
31,000
401
Construction fees earned
150,000
612
Depreciation expenseâEquipment
0
623
Wages expense
43,000
633
Interest expense
2,530
637
Insurance expense
0
640
Rent expense
15,000
652
Supplies expense
0
683
Property taxes expense
5,000
684
Repairs expense
2,700
690
Utilities expense
3,900
Totals
$
281,200
$
281,200
Adjustments:
a.
The supplies available at the end of fiscal year 2015 had a costof $2,880.
b.
The cost of expired insurance for the fiscal year is $3,465.
c.
Annual depreciation on equipment is $8,900.
d.
The June utilities expense of $520 is not included in theunadjusted trial balance because the bill arrived after the trialbalance was prepared. The $520 amount owed needs to berecorded.
e.
The companyâs employees have earned $1,500 of accrued wages atfiscal year-end.
f.
The rent expense incurred and not yet paid or recorded at fiscalyear-end is $200.
g.
Additional property taxes of $1,000 have been assessed for thisfiscal year but have not been paid or recorded in the accounts.
h.
The long-term note payable bears interest at 12% per year. Theunadjusted Interest Expense account equals the amount paid for thefirst 11 months of the 2015 fiscal year. The $230 accrued interestfor June has not yet been paid or recorded. (The company isrequired to make a $4,000 payment toward the note payable duringthe 2016 fiscal year.)
1.Prepare a 10-column work sheet for fiscalyear 2015, starting with the unadjusted trial balance and includingadjustments based on the additional facts.
2. Prepare the statement of owner's equity for the year endedJune 30
3.Prepare the classified balance sheet at June 30, 2015.
The following unadjusted trial balance is for ACE CONSTRUCTIONCO. as of the end of its 2015 fiscal year. The June 30, 2014,credit balance of the ownerâs capital account was $51,200, and theowner invested $29,000 cash in the company during the 2015 fiscalyear.
ACE CONSTRUCTION CO. | |||||
No. | Account Title | Debit | Credit | ||
101 | Cash | $ | 19,000 | ||
126 | Supplies | 8,000 | |||
128 | Prepaid insurance | 5,500 | |||
167 | Equipment | 145,570 | |||
168 | Accumulated depreciationâEquipment | $ 23,000 | |||
201 | Accounts payable | 5,000 | |||
203 | Interest payable | 0 | |||
208 | Rent payable | 0 | |||
210 | Wages payable | 0 | |||
213 | Property taxes payable | 0 | |||
251 | Long-term notes payable | 23,000 | |||
301 | V. Ace, Capital | 80,200 | |||
302 | V. Ace, Withdrawals | 31,000 | |||
401 | Construction fees earned | 150,000 | |||
612 | Depreciation expenseâEquipment | 0 | |||
623 | Wages expense | 43,000 | |||
633 | Interest expense | 2,530 | |||
637 | Insurance expense | 0 | |||
640 | Rent expense | 15,000 | |||
652 | Supplies expense | 0 | |||
683 | Property taxes expense | 5,000 | |||
684 | Repairs expense | 2,700 | |||
690 | Utilities expense | 3,900 | |||
Totals | $ | 281,200 | $ | 281,200 |
Adjustments:
a. | The supplies available at the end of fiscal year 2015 had a costof $2,880. |
b. | The cost of expired insurance for the fiscal year is $3,465. |
c. | Annual depreciation on equipment is $8,900. |
d. | The June utilities expense of $520 is not included in theunadjusted trial balance because the bill arrived after the trialbalance was prepared. The $520 amount owed needs to berecorded. |
e. | The companyâs employees have earned $1,500 of accrued wages atfiscal year-end. |
f. | The rent expense incurred and not yet paid or recorded at fiscalyear-end is $200. |
g. | Additional property taxes of $1,000 have been assessed for thisfiscal year but have not been paid or recorded in the accounts. |
h. | The long-term note payable bears interest at 12% per year. Theunadjusted Interest Expense account equals the amount paid for thefirst 11 months of the 2015 fiscal year. The $230 accrued interestfor June has not yet been paid or recorded. (The company isrequired to make a $4,000 payment toward the note payable duringthe 2016 fiscal year.) |
1.Prepare a 10-column work sheet for fiscalyear 2015, starting with the unadjusted trial balance and includingadjustments based on the additional facts.
2. Prepare the statement of owner's equity for the year endedJune 30
3.Prepare the classified balance sheet at June 30, 2015.