Chapter 4, Problem 2AP

The following unadjusted trial balance is for Ace Construction Co. as of the end of its 2019 fiscal year. The June 30, 2018, credit balance of the owner’s capital account was $53,660, and the owner invested $35,000 cash in the company during the 2019 fiscal year.

Required

1. 1. Prepare and complete a I0-column work sheet for fiscal year 2019, starting with the unadjusted trial balance and including adjustments based on these additional facts.
   1. a. The supplies available at the end of fiscal year 2019 had a cost of $3,300.
   2. b. The cost of expired insurance for the fiscal year is $3,800.
   3. c. Annual depreciation on equipment is $8,400.
   4. 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 earned $1,800 of accrued and unpaid wages at fiscal year-end.

      f.    The 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 in the accounts.

      h.    The $250 accrued interest for June on the long-term notes payable has not yet been paid or recorded.

2. 2. Using information from the completed 10-column work sheet in part 1, journalize the adjusting entries and the closing entries.
3. 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, 2019.