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.

Account Title	Debit	Credit
101 Cash	$15,000
126 Supplies	$8,500
128 Pre-paid insurance	$11,200
167 Equipment	$175,000
168 Accumulated depreciation - equipment		$19,000
201 Accounts payable		$9,250
251 Long-term notes payable		$45,000
301 Shareholders' equity		$106,900
302 Dividends	$15,750
401 Construction Revenue		$153,000
623 Wage expense	$61,800
633 Interest expense	$6,250
640 Rent expense	$15,750
683 Property tax expense	$12,500
684 Repairs expense	$6,100
690 Utilities expense	$5,300
TOTALS	$333,150	$333,150

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.