Question: the following unadjusted trial balance is for groenke construction company...
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
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.
- 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.