The following unadjusted trial balance is for Ace Construction Co. as of the end of its...

The following unadjusted trial balance is for Ace Construction Co. as of the end of its 2010 fiscal year. The June 30, 2009, credit balance of the owner’s capital account was $53,660, and the owner invested $35,000 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 $3,300.

b. The cost of expired insurance for the fiscal year is $3,800.

c. Annual depreciation on equipment is $8,400.

d. The June utilities expense of $650 is not included in the unadjusted trial balance because the bill 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.

2. Use the work sheet to enter the adjusting entries, then journalize the 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 June 30 and the balance sheet at June 30, 2010.