The following unadjusted trial balance is for Power Demolition Company as of the end of...

The following unadjusted trial balance is for Power Demolition Company as of the end of its April 30, 2010, fiscal year. The April 30, 2009, credit balance of the owner’s capital account was $46,900, and the owner invested $40,000 cash in the company during the 2010 fiscal year.

Required

1. Using Exhibit 6.1 as a guide, prepare a 10-column work sheet for fiscal year 2010, starting with the

unadjusted trial balance and including adjustments based on these additional facts.

a. The supplies available at the end of fiscal year 2010 had a cost of $7,900.

b. The cost of expired insurance for the fiscal year is $10,600.

c. Annual depreciation on equipment is $7,000.

d. The April utilities expense of $800 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $800 amount owed needs to be recorded.

e. The company’s employees have earned $2,000 of accrued wages at fiscal year-end.

f. The rent expense incurred and not yet paid or recorded at fiscal year-end is $3,000.

2. Enter the adjusting entry information in the work sheet; then journalize adjusting entries.

3. Prepare an adjusted trial balance.

4. Extend the adjusted trial balance amounts to the proper financial statement column of the work sheet.

5. Prepare closing entries.

6. Prepare the income statement and the statement of owner’s equity for the year ended April 30, and the balance sheet at April 30, 2010.