Reference no: EM132385651
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 $61,900, 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
Instructions:
Use the template provided to:
Journalize the following adjusting entries as of fiscal year-end December 31, 20x7.
Post the adjusting entries to an unadjusted trial balance and prepare the adjusted trial balance.
Create financial statements, namely: i) the income statement, ii) statement of stockholders' equity, and iii) the balance sheet for 20x7.
Adjustments needed:
The supplies available at the end of the fiscal year 20x7 are at a cost of $5,700.
The company's employees have earned $3.500 in accrued wages for the fiscal year.
The cost of expired insurance for the fiscal year is $8,600.
The rent expense not yet paid or recorded in the fiscal year is $2,250.
Annual depreciation on equipment is $8,000; no other depreciation adjustment was made in 20x7.
The $450 accrued interest for December has not yet been paid and reported.
Additional property taxes of $625 have been assessed for the fiscal year but have not yet been paid or recorded in the accounts.
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.
The company paid dividends of $15,575 to its shareholders on record.