Question

The following unadjusted trial balance is for Ace Construction Co. as of the end of its 2019 fiscal year. The June 30, 2018, credit balance of the owner’s capital account was $57,700, and the owner invested $26,000 cash in the company during the 2019 fiscal year.

ACE CONSTRUCTION CO. Unadjusted Trial Balance June 30, 2019
No.	Account Title	Debit				Credit
101	Cash	$	16,000
126	Supplies		9,000
128	Prepaid insurance		7,000
167	Equipment		135,920
168	Accumulated depreciation—Equipment					$	25,000
201	Accounts payable						6,000
203	Interest payable						0
208	Rent payable						0
210	Wages payable						0
213	Property taxes payable						0
251	Long-term notes payable						28,000
301	V. Ace, Capital						83,700
302	V. Ace, Withdrawals		33,000
401	Construction fees earned						136,000
612	Depreciation expense—Equipment		0
623	Wages expense		50,000
633	Interest expense		3,080
637	Insurance expense		0
640	Rent expense		13,000
652	Supplies expense		0
683	Property taxes expense		4,100
684	Repairs expense		2,800
690	Utilities expense		4,800
	Totals	$	278,700			$	278,700

Adjustments:

1. The supplies available at the end of fiscal year 2019 had a cost of $3,240.
2. The cost of expired insurance for the fiscal year is $4,410.
3. Annual depreciation on equipment is $8,500.
4. The June utilities expense of $580 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $580 amount owed needs to be recorded.
5. The company’s employees have earned $1,400 of accrued and unpaid wages at fiscal year-end.
6. The rent expense incurred and not yet paid or recorded at fiscal year-end is $300.
7. Additional property taxes of $500 have been assessed for this fiscal year but have not been paid or recorded in the accounts.
8. The $280 accrued interest for June on the long-term notes payable has not yet been paid or recorded.

Required:
1. Prepare a 10-column work sheet for fiscal year 2019, starting with the unadjusted trial balance and including adjustments based on the additional facts. The June 30, 2018, credit balance of the owner’s capital account was $57,700, and the owner invested $26,000 cash in the company during the 2019 fiscal year.
2a. Prepare the adjusting entries. (all dated June 30, 2019).
2b. Prepare the closing entries. (all dated June 30, 2019):
3a. Prepare the income statement for the year ended June 30, 2019.
3b. Prepare the statement of owner's equity for the year ended June 30, 2019.
3c. Prepare the classified balance sheet at June 30, 2019.
  

Answer 1

Due to character limit I am attaching the image from answer 2b to 3c.

ACE Construction	Unadjusted		Adjustments		Adjusted		Income Statement		Balance Sheet
Account Titles	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	16,000.00				16,000.00				16,000.00
Supplies	9,000.00			5,760.00	3,240.00				3,240.00
Prepaid Insurance	7,000.00			4,410.00	2,590.00				2,590.00
Equipment	135,920.00				135,920.00				135,920.00
Accumulated Depreciation		25,000.00		8,500.00		33,500.00			(33,500.00)
Accounts Payable		6,000.00		580.00		6,580.00				6,580.00
Interest Payable				280.00		280.00				280.00
Rent Payable				300.00		300.00				300.00
Wages Payable				1,400.00		1,400.00				1,400.00
Property Taxes Payable				500.00		500.00				500.00
Long term Loans Payable		28,000.00				28,000.00				28,000.00
V. Ace Capital		83,700.00				83,700.00				83,700.00
V. Ace Withdrawals	33,000.00				33,000.00					(33,000.00)
Construction Fees Earned		136,000.00				136,000.00		136,000.00
Depreciation Expense			8,500.00		8,500.00		8,500.00
Wages Expense	50,000.00		1,400.00		51,400.00		51,400.00
Interest Expense	3,080.00		280.00		3,360.00		3,360.00
Insurance Expense			4,410.00		4,410.00		4,410.00
Rent Expense	13,000.00		300.00		13,300.00		13,300.00
Supplies Expense			5,760.00		5,760.00		5,760.00
Property Taxes Expense	4,100.00		500.00		4,600.00		4,600.00
Repairs expense	2,800.00				2,800.00		2,800.00
Utilities Expense	4,800.00		580.00		5,380.00		5,380.00
Income Summary							36,490.00			36,490.00
Total	278,700.00	278,700.00	21,730.00	21,730.00	290,260.00	290,260.00	136,000.00	136,000.00	124,250.00	124,250.00

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