ANEOHE RENOVATIONS Unadjusted Trial Balance December 31, 2015 Cash $4,000 Accoun

Question

ANEOHE RENOVATIONS Unadjusted Trial Balance December 31, 2015 Cash $4,000 Accounts receivable 1,800 Construction supplies 1,360 Prepaid insurance 1,940 Investment in Sierra, Inc., common shares (long-term) 8,000 Trucks 38,000 Accumulated depreciation, trucks $15,000 Construction equipment 6,400 Accumulated depreciation, construction equipment 2,300 Building 103,000 Accumulated depreciation, building 38,600 Land 24,000 Franchise 35,000 Unearned renovation service revenue 1,950 Notes payable, long term 83,400 Capital 66,075 Drawings 32,000 Renovation architecture fees 14,800 Renovation services revenue 96,000 Gas, oil, and repairs expense 4,825 Interest expense 7,650 Renovation wages expense 34,050 Office salaries expense 16,100 TOTAL $318,125 $318,125 REQUIRED: (1) Set-up the T-ACCTS for the items in the trial balance above plus these additional accounts: Wages Payable Depreciation Expense, Building Depreciation Expense, Construction Equipment Depreciation Expense, Trucks Insurance Expense Construction Supplies Expense Enter the trial balance amounts in the T-ACCTS. (2) Use the information that follows to prepare and record adjusting journal entries. (a) Insurance premiums of $1,115 expired during the year. (b) An inventory count shows $1,232 of unused construction supplies on hand. (c) Depreciation on the construction equipment, $1,625. (d) Depreciation on the trucks, $9,400. (e) Depreciation on the building, $4,900. (f) Of the $1,950 balance in the Unearned Renovation Service Revenue account, $725 was earned by the year-end. (g) Accrued renovation architecture fees earned but unrecorded at year-end totaled $2,100. (h) There were $960 of earned but unrecorded wages for an employee at the year-end. (3) Post the adjusting entries to T-Accounts. (4) Prepare an adjusted trial balance. (5) In good form, prepare an income statement, a statement of owner’s equity, and a classified balance sheet. A $10,400 installment on the long-term note payable is due within one year. KEY NUMBERS: Balance Construction Supplies $ 1,232Balance Prepaid Insurance 825Balance Unearned Renovation Architecture Fees 1,225Balance Renovation Architecture Fees Earned 16,900Balance Renovation Wages Expense 35,010Total debit column Trial Balance 337,110Net Income 32,872Total Assets 152,532Total Current Liabilities 12,585

Explanation / Answer

CREDIT AMOUNT($) DEBIT AMOUNT($) UNEARNED RENOVATION SERVICE REVENUE 1950 CASH 4000 NOTE PAYABLE 83400 ACCOUNTS RECEIVABLES 1800 CAPITAL 66075 CONSTRUCTION SUPPLIES 1360 LESS:DRAWINGS 32,000 34075 PREPAID INSURANCE 1940 INTEREST EXPENSE 7650 INVESTMENT IN SIERRA INC 8000 RENOVATION WAGE EXPENSE 34050 TRUCKS 38000 OFFICE SALARY EXPENSE 16100 LESS:ACCUMULATED DEPRECIATION15000 23000 CONSTRUCTION EQUIPMENT 6400 LESS:ACCUMULATED DEPRECIATION 2300 4100 BUILDING 103000 LESS:ACCUMULATED DEPRECIATION 38600 64400 LAND 24000 FRANCHISE 35000

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