ACT300 Principles of Accounting I

Module 8: Portfolio Project Template Option #1, Part 2

Groenke Construction Company

Groenke Construction Co, Adjustments December 31, 20X7

Adjust # Account Names Debit Credit
1 Supplies Expense 2,800
Supplies 2,800
2 Wage expense 3,500
Wages payable 3,500
3 Insurance Expense 8,600
Prepaid insurance 8,600
4 Rent expense 2,250
Rent payable 2,250
5 Depreciation expense 8,000
Accumulated depreciation 8,000
6 Interest expense 450
Accrued interest 450
7 Property tax expense 625
Property tax payable 625
8 Utilities expense 425
Utilities payable 425

Groenke Construction Co, Adjustments December 31, 20X7

Unadjusted Trial Balance Adjustments Adjusted Trial Balance
Acct # Account Names Debit Credit Debit Credit Debit Credit
101 Cash $15,000 $15,000
126 Supplies $8,500 $2,800 $5,700
128 Prepaid insurance $11,200 $8,600 $2,600
167 Equipment $175,000 $175,000
168 Accumulated depreciation - equipment $19,000 $8,000 $27,000
201 Accounts payable $9,250 $9,250
251 Long-term notes payable $45,000 $45,000
301 Stockholders' equity $106,900 $106,900
302 Dividends $15,750 $15,750
401 Demolition fees earned $153,000 $153,000
623 Wage expense $61,800 $3,500 $65,300
633 Interest expense $6,250 $450 $6,700
640 Rent expense $15,750 $2,250 $18,000
683 Property tax expense $12,500 $625 $13,125
684 Repair expense $6,100 6100
690 Utilities expense $5,300 $425 $5,725
Supplies Expense $2,800 $2,800
Wages payable $3,500 $3,500
Insurance Expense $8,600 $8,600
Rent payable $2,250 $2,250
Depreciation expense $8,000 $8,000
Interest payable $450 $450
Property tax payable $625 $625
Utilities payable $425 $425
TOTALS $333,150 $333,150 $26,650 $26,650 $348,400 $348,400
BE SURE TO CREATE A FINANCIAL STATEMENTS FROM THE ADJUSTED TRIAL BALANCE

Groenke Construction Co.

Income Statement
For the year ending December 31, 2007

Revenues:
Demolition fees earned $ 153,000

Expenses:
Wages 65,300
Interest 6,700
Rent 18,000
Property Tax 13,125
Repairs 6,100
Utilities 5,725
Supplies Expense 2,800
Insurance 8,600
Depreciation 8,000

Total expenses $ 134,350

Net income $18,650

Groenke Construction Co.

Statement of Stockholders' Equity
As at Decemeber 31, 2007
Stockholders' Equity, [31-Dec-2007] $ 61,900
Plus: Additional shareholder investment ###
Net income ###

Less: Dividends $ 15,750

Stockholders' Equity, [31-Dec-2007] $ 109,800

Groenke Construction Co.

Balance Sheet
for the year ended Decemeber 31, 2007

Assets Liabilities & Stockholders' Equity

Cash $ 15,000 Accounts Payable $ 9,250

Supplies 5,700 Wages Payable 3,500
Prepaid Insurance 2,600 Rent Payable 2,250
Equipment 175,000 Interest Payable 450
Accumulated Depreciation (27,000) Property Tax Payable 625
Utilities Payable 425
Long-term Notes 45,000
61,500
 Total stockholders' equity $ 109,800
Total Assets $ 171,300 Total liabilities and stockholders' equity $171,300