I need help with this topic Preparing a work sheet, adjusting
And closing entries, and financial statements
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.
Required
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.)
