Acc225 Fundamental Accounting Principles: P4-5A The following unadjusted trial balance is for Adams

Acc225 Fundamental Accounting Principles
Problem 4-5A (Part 1-3 only)
The following unadjusted trial balance is for Adams Construction Co. as of the end of its 2005 fiscal year. The June 30, 2004, credit balance of the owner's capital account was $52,660, and the owner invested $25,000 cash in the company during the 2005 fiscal year.
Unadjusted Trial Balance
June 30, 2005
Account Title Debit Credit
Cash 17,500
Supplies 8,900
Prepaid insurance 6,200
Equipment 131,000
Accumulated depreciation—Equipment 25,250
Accounts payable 5,800
Interest payable -
Rent payable -
Wages payable -
Property taxes payable -
Long-term notes payable 24,000
S. Adams, Capital 77,660
S. Adams, Withdrawals 30,000
Construction fees earned 134,000
Depreciation expense—Equipment -
Wages expense 45,860
Interest expense 2,640
Insurance expense -
Rent expense 13,200
Supplies expense -
Property taxes expense 4,600
Repairs expense 2,810
Utilities expense 4,000
Totals $266,710 $266,710

1. Prepare a 10-column work sheet for fiscal year 2005, starting with the unadjusted trial balance and including adjustments based on these additional facts:
a. The supplies available at the end of fiscal year 2005 had a cost of $3,200.
b. The cost of expired insurance for the fiscal year is $3,900.
c. Annual depreciation on equipment is $8,500.
d. The June utilities expense of $550 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $550 amount owed needs to be recorded.
e. The company's employees have earned $1,600 of accrued wages at fiscal year-end.
f. The rent expense incurred and not yet paid or recorded at fiscal year-end is $200.
g. Additional property taxes of $900 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 1% per month. The unadjusted Interest Expense account equals the amount paid for the first 11 months of the 2005 fiscal year. The $240 accrued interest for June has not yet been paid or recorded. (Note that the company is required to make a $5,000 payment toward the note payable during the 2006 fiscal year.)
2. Use the work sheet to enter the adjusting and closing entries; then journalize them.
3. Prepare the income statement and the statement of owner's equity for the year ended June 30 and the classified balance sheet at June 30, 2005.
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