The unadjusted trial balance for Ace Construction Co as of June 30, 2017. the en

Question

The unadjusted trial balance for Ace Construction Co as of June 30, 2017. the end of its fiscal year, is found on the trial balance tab. June 30, 2016, credit balance of the owner's capital account was $53,660, and the owner invested $35,000 cash in the company during the 2017 fiscal year Information for edjustments is as follows a. The supplies available at the end of fiscal year 2017 had a cost of $3,300 b. The cost of expired insurance for the fiscal year is $3,800 Skipped d. The June utilities expense of 5650 is not included in the unadjusted trial balance because the bil 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 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 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 $250 accrued interest for June has not yet been paid or recorded. (The company s required to make a $5,000 payment toward the note payable during the 2018 fiscal year) CedgenTil alance statcoBance Sheet oboan Requirement Journal Trial Balance Equty Balance Sheet Ledger General Journal tab Prepare any necessary adjusting and closing entries for the current fiscal year General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post closing balances Trial Balance tab- You may view the unadjusted, adjusted, or post-closing trial balances by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs. Income Statement tab - Use the drop-downs to select the accounts properly included on the income statement. The unadjusted, adjusted or post-closing balances will appear for each account, based on your selection.

Explanation / Answer

Adjustment Entries

To Supplies A/c

To Prepaid Insurance A/c

To Accumulated Depreciation on Equipment

To Accounts Payable

To Wages Payable

To Rent Payable

To Property Tax Payable

To Interest Payable

To Short Term Notes Payable

* Since it is explicitly given in the question that the company will pay a sum of $5000 in the next fiscal year, thus it can be interpreted that the $5000 out of the Long Term Notes Payable is now a short term liability (that is payable in an accounting period).

Note: In the entries where the amount is outstanding, an alternative could be to credit Accounts Payable A/c in place of Wages Payable/ Rent Payable etc.

Adjusted Trial Balance

Closing Entries:

132100

Note: It is assumed that Property Tax is paid on business premises.

Date Particulars Debit Credit Jun 30 Supplies Expense A/c 6600

To Supplies A/c

6600 Jun 30 Insurance expense A/c 3800

To Prepaid Insurance A/c

3800 Jun 30 Depreciation on Equipment A/c 8400

To Accumulated Depreciation on Equipment

8400 Jun 30 Utilities Expense A/c 650

To Accounts Payable

650 Jun 30 Wages A/c 1800

To Wages Payable

1800 Jun 30 Rent A/c 500

To Rent Payable

500 Jun 30 Property Tax A/c 1000

To Property Tax Payable

1000 Jun 30 Interest A/c 250

To Interest Payable

250 Jun 30 Long Term Notes Payable A/c* 5000

To Short Term Notes Payable

5000

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