Problem 4-2A Preparing a work sheet, adjusting and closing
entries, and financial statements LO C3, P1, P2
The following unadjusted trial balance is for ACE CONSTRUCTION
CO. as of the end of its 2017 fiscal year. The June 30, 2016,
credit balance of the owners capital account was $53,800, and the
owner invested $25,000 cash in the company during the 2017 fiscal
ACE CONSTRUCTION CO.
Unadjusted Trial Balance
June 30, 2017
Property taxes payable
Long-term notes payable
V. Ace, Capital
V. Ace, Withdrawals
Construction fees earned
Property taxes expense
The supplies available at the end of fiscal year 2017 had a cost
The cost of expired insurance for the fiscal year is $3,465.
Annual depreciation on equipment is $8,500.
The June utilities expense of $580 is not included in the
unadjusted trial balance because the bill arrived after the trial
balance was prepared. The $580 amount owed needs to be
The companys employees have earned $1,700 of accrued wages at
The rent expense incurred and not yet paid or recorded at fiscal
year-end is $100.
Additional property taxes of $1,000 have been assessed for this
fiscal year but have not been paid or recorded in the accounts.
The long-term note payable bears interest at 12% per year. The
unadjusted Interest Expense account equals the amount paid for the
first 11 months of the 2017 fiscal year. The $220 accrued interest
for June has not yet been paid or recorded. (The company is
required to make a $4,000 payment toward the note payable during
the 2018 fiscal year.)
1. Prepare a 10-column work sheet for fiscal year 2017,
starting with the unadjusted trial balance and including
adjustments based on the additional facts.
2a. Prepare the adjusting entries. (all dated June
2b. Prepare the closing entries. (all dated June
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
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