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Kim Valdez
Nov 15, 2009, 02:30 PM
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.

Kim Valdez
Nov 15, 2009, 02:44 PM
Please ignore -do not answer