ACE CONSTRUCTION CO. Unadjusted Trial Balance June 30, 2013 No. Account Title De
ID: 2603068 • Letter: A
Question
ACE CONSTRUCTION CO.
Unadjusted Trial Balance
June 30, 2013
No.
Account Title
Debit
Credit
101
Cash
19,000
126
Supplies
7,000
128
Prepaid insurance
6,000
167
Equipment
139,290
168
accumulated Depreciation – Equipment
$ 22,000
201
Accounts payable
6,200
251
Long-term notes payable
21,000
301
V. Ace, equity
79,900
302
V. Ace, withdrawals
26,500
401
Construction fees earned
144,000
623
Wages expense
49,000
633
Interest expense
2,310
640
Rent expense
13,000
683
Property taxes expense
4,100
684
Repairs expense
2,600
690
Utilities expense
4,300
Totals
273,100
273,100
Instructions:
a) Journalize the following adjusting entries as of fiscal year-end April 30, 2015.
b) Post the adjusting entries to an unadjusted trial balance and prepare the adjusted trial balance.
Adjustments:
The supplies available at the end of fiscal year 2013 had a cost of $2,520.
The cost of expired insurance for the fiscal year is $3,780.
Annual depreciation on equipment is $8,700.
The June utilities expense of $520 is not included in the unadjusted trial balance, because the bill arrived after the trial balance was prepared. The $520 amount owed needs to be recorded.
The company’s employees have earned $1,500 of accrued wages at fiscal year-end.
The rent expense incurred and not yet paid or recorded at fiscal year-end is $300.
Additional property taxes of $800 have been assessed for this fiscal year, but have not been paid or recorded in the accounts.
The $210 accrued interest for June has not yet been paid or recorded.
ACE CONSTRUCTION CO.
Unadjusted Trial Balance
June 30, 2013
No.
Account Title
Debit
Credit
101
Cash
19,000
126
Supplies
7,000
128
Prepaid insurance
6,000
167
Equipment
139,290
168
accumulated Depreciation – Equipment
$ 22,000
201
Accounts payable
6,200
251
Long-term notes payable
21,000
301
V. Ace, equity
79,900
302
V. Ace, withdrawals
26,500
401
Construction fees earned
144,000
623
Wages expense
49,000
633
Interest expense
2,310
640
Rent expense
13,000
683
Property taxes expense
4,100
684
Repairs expense
2,600
690
Utilities expense
4,300
Totals
273,100
273,100
Explanation / Answer
Adjusting Entries (All dated April 30, 2015)
a) The supplies available at the end of fiscal year 2013 had a cost of $2,520.
Dr Supplies Expenses $ 2,520
Cr Supplies $2,520
b) The cost of expired insurance for the fiscal year is $3,780.
Dr Insurance Expenses $3,780
Cr Prepaid Insurance $3,780
c) Annual depreciation on equipment is $8,700.
Dr Depreciation Expenses - Equipment $ 8,700
Cr Accumulated Depreciatio - Equipment $8,700
d) The June utilities expense of $520 is not included in the unadjusted trial balance, because the bill arrived after the trial balance was prepared. The $520 amount owed needs to be recorded.
Dr Utilites Expense $ 520
Cr Accounts Payable $520
e) The company’s employees have earned $1,500 of accrued wages at fiscal year-end.
Dr Wages Expense $1,500
Cr Wages Payable $1,500
f) The rent expense incurred and not yet paid or recorded at fiscal year-end is $300.
Dr Rent Expense $ 300
Cr Rent Payable $300
g) Additional property taxes of $800 have been assessed for this fiscal year, but have not been paid or recorded in the accounts.
Dr Property Tax Expenses $800
Cr Property Tax Payable $800
h) The $210 accrued interest for June has not yet been paid or recorded.
Dr Interest Expense $210
Cr Interest Payable $210
Adjusted Trial Balance
Unadjusted
Trial Balance
Adjustments
Adjusted
Trial Balance
No.
Account Title
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash
19,000
19,000
Supplies
7,000
2,520
4480
Prepaid insurance
6,000
3,780
2,220
Equipment
139,290
139,290
Accumulated depreciation—
Equipment
22,000
8,700
30,700
Accounts payable
6,200
520
6,720
Interest payable
210
210
Rent payable
300
300
Wages payable
1,500
1,500
Property taxes payable
800
800
Long-term notes payable
21,000
21,000
Ace, Capital
79,900
79,900
Ace, Withdrawals
26,500
26,500
Construction fees earned
144,000
144,000
Depreciation expense—
Equipment
8,700
8,700
Wages expense
49,000
1,500
50,500
Interest expense
2,310
210
2,520
Insurance expense
3,780
3,780
Rent expense
13,000
300
13,300
Supplies expense
2,520
2,520
Property taxes expense
4,100
800
4,900
Repairs expense
2,600
2,600
Utilities expense
4,300
520
4,820
Totals
273,100
273,100
18,330
18,330
291430
291,430
Unadjusted
Trial Balance
Adjustments
Adjusted
Trial Balance
No.
Account Title
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash
19,000
19,000
Supplies
7,000
2,520
4480
Prepaid insurance
6,000
3,780
2,220
Equipment
139,290
139,290
Accumulated depreciation—
Equipment
22,000
8,700
30,700
Accounts payable
6,200
520
6,720
Interest payable
210
210
Rent payable
300
300
Wages payable
1,500
1,500
Property taxes payable
800
800
Long-term notes payable
21,000
21,000
Ace, Capital
79,900
79,900
Ace, Withdrawals
26,500
26,500
Construction fees earned
144,000
144,000
Depreciation expense—
Equipment
8,700
8,700
Wages expense
49,000
1,500
50,500
Interest expense
2,310
210
2,520
Insurance expense
3,780
3,780
Rent expense
13,000
300
13,300
Supplies expense
2,520
2,520
Property taxes expense
4,100
800
4,900
Repairs expense
2,600
2,600
Utilities expense
4,300
520
4,820
Totals
273,100
273,100
18,330
18,330
291430
291,430
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.