Reference no: EM132459014
ACCT 3001 - Intermediate Accounting Assignment Help and Solution - Louisiana State University, USA
Question - The following unadjusted trial balance is for Groenke Construction Company as of year-end for the December 31, 20x7 fiscal year. The December 31, 20x6 credit balance of the stockholders' equity account is $50,500, and the stockholders invested $45,000 cash in the company during 20x7.
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Account Title
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Debit
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Credit
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101 Cash
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$15,000
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|
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126 Supplies
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$8,500
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|
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128 Pre-paid insurance
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$11,200
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|
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167 Equipment
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$175,000
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|
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168 Accumulated depreciation - equipment
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$19,000
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201 Accounts payable
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$9,250
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251 Long-term notes payable
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$45,000
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301 Shareholders' equity
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$106,900
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302 Dividends
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$15,750
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|
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401 Construction Revenue
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$153,000
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623 Wage expense
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$61,800
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|
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633 Interest expense
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$6,250
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|
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640 Rent expense
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$15,750
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|
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683 Property tax expense
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$12,500
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|
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684 Repairs expense
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$6,100
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690 Utilities expense
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$5,300
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TOTALS
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$333,150
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$333,150
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Required -
1. Journalize the following adjusting entries as of fiscal year-end December 31, 20x7.
2. Post the adjusting entries to an unadjusted trial balance and prepare the adjusted trial balance.
3. Create financial statements, namely: i) the income statement, ii) statement of stockholders' equity, and iii) the balance sheet for 20x7.
Adjustments needed:
1. The supplies available at the end of the fiscal year 20x7 are at a cost of $5,700.
2. The company's employees have earned $3.500 in accrued wages for the fiscal year.
3. The cost of expired insurance for the fiscal year is $8,600.
4. The rent expense not yet paid or recorded in the fiscal year is $2,250.
5. Annual depreciation on equipment is $8,000; no other depreciation adjustment was made in 20x7.
6. The $450 accrued interest for December has not yet been paid and reported.
7. Additional property taxes of $625 have been assessed for the fiscal year but have not yet been paid or recorded in the accounts.
8. The December utilities expense of $425 is not included in the adjusted trial balance, because the bill arrived after the trial balance was prepared. The $425 amount owed needs to be recorded.