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 $52,500 on June 30 of the prior year, and the owner invested $22,000 cash during the current fiscal year. ACE CONSTRUCTION COMPANY
Unadjusted Trial Balance
June 30
Account Title Debit Credit 101
Cash $ 17,000
Supplies 8,000
Prepaid insurance 7,000
Equipment 121,180
Accumulated depreciation—Equipment $ 22,000
Accounts payable 5,400
Interest payable 0
Rent payable 0
Wages payable 0
Property taxes payable 0
Long-term notes payable 22,000
V. Ace, Capital 74,500
V. Ace, Withdrawals 32,000
Construction revenue 134,000
Depreciation expense—Equipment 0
Wages expense 49,000
Interest expense 2,420
Insurance expense 0
Rent expense 11,000
Supplies expense 0
Property taxes expense 4,200
Repairs expense 2,900
Utilities expense 3,200
Totals $ 257,900 $ 257,900
a. The supplies available at the end of fiscal year 2019 had a cost of $2,520.
b. The cost of expired insurance for the fiscal year is $4,095.
c. Annual depreciation on equipment is $8,600.
d. The June utilities expense of $570 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $570 amount owed needs to be recorded.
e. The company's employees have earned $1,700 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 $400.
g. Additional property taxes of $600 have been assessed for this fiscal year but have not been paid or recorded in the accounts.
h. The $290 accrued interest for June on the long-term notes payable has not yet been paid or recorded. Required:
1. Prepare a 10-column work sheet for fiscal year 2019, starting with the unadjusted trial balance and including adjustments based on the additional facts. The June 30, 2018, credit balance of the owner's capital account was $52,600, and the owner invested $28,000 cash in the company during the 2019 fiscal year.
2a. Prepare the adjusting entries (all dated June 30, 2019).
2b. Prepare the closing entries (all dated June 30, 2019).
3a. Prepare the income statement for the year ended June 30, 2019.
3b. Prepare the statement of owner's equity for the year ended June 30, 2019 3c. Prepare the classified balance sheet at June 30, 2019,