Question

18 The following unadjusted trial balance is for Ace Construction Caas of the end of its 2019 fiscal year. The June 30, 2018, credit balance of the owner's capital account was $52.500, and the owner invested $28,000 cash in the company during the 2019 fiscal year. 5.38 points Credit Skipeed eBook $ 29,000 5,400 0 ACE CONSTRUCTION CO. Unadjusted Trial Balance June 30, 2019 No Account Title Debit 101 Cash $ 15,000 126 Supplies 7.000 128 Prepaid insurance 6,500 167 Equipment 165, 110 168 Accumulated depreciation Equipment 201 Accounts payable 203 Interest payable 208 Rent payable 210 Wages payable 213 Property taxes payable 251 Longters notes payable 301 V. Ace, Capital 302 V. Ace, withdrawals 25,000 401 Construction fees earned 612 Depreciation expense-Equipment 623 Wages expense 42.000 633 Interest expense 3.190 637 Insurance expense 640 Rent expense 10.000 652 Supplies expense B 683 Property taxes expense 5.000 Ant 0 0 20.000 80, 500 142,000

Answer 1

1. Work Sheet -

Accounts Title Cash Supplies Prepaid Insurance Equipment Accumulated Depreciation - Equipment Accounts Payable Interest Payable Rent Payable Wages Payable Property Tax Payable Long Term Notes Payable V. Ace, Capital V. Ace, Withdrawals Construction Fees Earned Depreciation Expense - Equipment Wages Expense Interest Expense Insurance Expense Rent Expense Supplies Expense Property taxes Expense Repairs Expense Utilities Expense ACE CONTRUCTION CO. Work Sheet Unadjusted Trial Adjusted Trial Adjustments Balance Balance Debit Credit Debit Credit Debit Credit $ 15,000 $ 15,000 $ 7,000 $ 4,480 $ 2,520 $ 6,500 $ 4,095 $ 2,405 $ 165, 110 $ 165,110 $ 29,000 $ 8,600 $ 37,600 $ 5,400 $ 570 $ 5,970 $ 290 $ 290 $ 400 $ 400 $ 1,700 $ 1,700 $ 600 $ 600 $ 29,000 $ 29,000 $ 80,600 $ 80,600 $ 25,000 $ 25,000 $ 142,000 $ 142,000 $ 8,600 $ 8,600 $ 42,000 $ 1,700 $ 43,700 $ 3,190 $ 290 $ 3,480 $ 4,095 $ 4,095 $ 10,000 $ 400 $ 10,400 $ 4,480 $ 4,480 $ 5,000 $ 600 $ 5,600 $ 2,500 $ 2,500 $ 4,700 $ 570 $ 5,270 Total $ 286,000 $286,000 $ 20,735 $ 20,735 $ 298,160 $ 298,160

2. Adjusting Entries -

Debit Credit ACE CONTRUCTION CO. Adjusting Entries Date Accounts Title June 30 Supplies Expense Supplies (Being Supplies Utilised) $ 4,480 $ 2,405 $ 4,095 June 30 Insurance Expense Prepaid Insurance (Being Insurance Expired) $ 4,095 June 30 Depreciation Expense - Equipment $ 8,600 Accumulated Depreciation - Equipment (Being Deppreciation Expense incurred) $ 8,600 570 June 30 Utilities Expense $ Accounts Payable (Being Utilitied expense incurred) $ 570 June 30 Wages Expense $ 1,700 Wages Payable (Being Wages Expense incurred) $ 1,700 $ 400 June 30 Rent Expense Rent Payable (Being rent expense accrued) $ 400 600 June 30 Property taxes Expense $ Property Tax Payable (Being Property Tax accrued) $ 600 290 June 30 Interest Expense $ Interest Payable (Being interest expense accured) $ 290

3. Closing Entries -

Debit Credit ACE CONTRUCTION CO. Closing Entries Date Accounts Title June 30 Construction Fees Earned Income Summary (Being Renenue Account Closed) 142000 142000 June 30 Income Summary $ 88,125 Depreciation Expense - Equipment Wages Expense Interest Expense Insurance Expense Rent Expense Supplies Expense Property taxes Expense Repairs Expense Utilities Expense (Being Expense account Closed) $ 8,600 $ 43,700 $ 3,480 $ 4,095 $ 10,400 $ 4,480 $ 5,600 $ 2,500 $ 5,270 June 30 Income Summary $ 53,875 V. Ace, Capital (Being Transfer balance to capital account) $53,875 June 30 V. Ace, Capital $ 25,000 V. Ace, Withdrawals (Being Withdrawal Account Closed) $ 25,000

4. Income Statement -

ACE CONTRUCTION CO. Income Statement For the Year Ended June 30, 2019 Construction Fees Earned $ 142,000 Expenses: Depreciation Expense - Equipment Wages Expense Interest Expense Insurance Expense Rent Expense Supplies Expense Property taxes Expense Repairs Expense Utilities Expense Total Expenses Ա | | | | | | | |ԱՐ $ 8,600 $ 43,700 $ 3,480 $ 4,095 $ 10,400 $ 4,480 $ 5,600 $ 2,500 $ 5,270 $ 88,125 Net Income $ 53,875

5. Statement of Owner's Equity -

ACE CONTRUCTION CO. . Statement of Owner's Equity For the Year Ended June 30, 2019 V. Ace, Capital July 1, 2019 $ 80,600 Add: Net Income $ 53,875 Less: V. Ace, Withdrawals $ (25,000) $ 28,875 V. Ace, Capital June 30, 2019 $109,475

6. Balance Sheet -

ACE CONTRUCTION CO. Balance Sheet June 30, 2019 Asset Current Asset: Cash $ 15,000 Supplies $ 2,520 Prepaid Insurance $ 2,405 Total Current Asset $ 19,925 Equipment $ 165,110 Accumulated Depreciation - Equipment $ (37,600) $127,510 Total Assets $ 147,435 Liabilities and Owner's Equity Current Liabilities: Accounts Payable Interest Payable Rent Payable Wages Payable Property Tax Payable Total Current Liabilities $ 5,970 $ 290 $ 400 $ 1,700 $ 600 $ 8,960 Long Term Notes Payable $ 29,000 Total Liabilities $ 37,960 Owner's Equity: V. Ace, Capital $ 109,475 Total Liabilities and Owner's Equity $ 147,435