Chapter 4, Problem 2PSA

To determine

Concept Introduction:

10-Column Worksheet:

10-column worksheet consists of detailed financial information during an accounting period regarding unadjusted trial balance, adjustments, adjusted trial balance, income statement and balance sheet.

Requirement 1:

To Prepare:

Prepare 10-column worksheet for Ace Construction Co.

To determine

Concept Introduction:

Adjusting Entries:The journal entries concerned with adjustments regarding accrual expenses and revenues are termed as adjusting entries.

Closing Entries:The journal entries which closes all the temporary account at the end of an accounting period is called closing entries.

Requirement 2:

Journal entries for the adjusting entries and closing entries as June 30, 2019

To determine

Concept Introduction:

Income Statement:The financial statement concerned with computation net income during an accounting period is called income statement. Net income is the excess amount of revenue over the expenses of a company and when the expenses are more than the revenue is termed as net loss.

Statement of Owner's Equity:It is a financial statement which shows the portion of owner's fund in the total capital of a company.

Classified Balance Sheet:A classified balance sheet interprets the financial position of a business during particular period under different categories i.e. current assets, current liabilities, non-current assets, long-term liabilities, property, plant and equipment and owner's equity.

Requirement 3:

To Prepare:

Prepare income statement, statement of owner's equity and balance sheet for the year ended June 30, 2019.