At the end of the fiscal year, Siglo Delivery Service, Inc.'s trial balance appeared as follows.
Trial balance- August 31, 2014
| Cash |
10,072 |
|
| Accounts Receivable |
29,314 |
|
| Prepaid Insurance |
5,340 |
|
| Delivery Supplies |
14,700 |
|
| O??ice Supplies |
2,460 |
|
| Land |
15,000 |
|
| Building |
196,000 |
|
| Accumulated Depreciation-Building |
|
53,400 |
| Trucks |
103,800 |
|
| Accumulated Depreciation-Trucks |
|
30,900 |
| O??ice Equipment |
15,900 |
|
| Accumulated Depreciation-O??ice Equipment |
|
10,800 |
| Accounts Payable |
|
9,396 |
| Unearned Lockbox Fees |
|
8,340 |
| Mortgage Payable |
|
72,000 |
| Common Stock |
|
100,000 |
| Retained Earnings |
|
28,730 |
| Dividends |
30,000 |
|
| Delivery Service Revenue |
|
283,470 |
| Lockbox Fees Earned |
|
28,800 |
| Truck Drivers' Wages Expense |
120,600 |
|
| O??ice Salaries Expense |
44,400 |
|
| Gas, Oil, and Truck Repairs Expense |
31,050 |
|
| Interest Expense |
7,200 |
|
|
625,83 6 |
625, 836 |
REQUIRED
1. Enter the trial balance amounts in the Trial Balance columns of a work sheet and complete the work sheet using the information that follows.
a. Expired insurance, $3,060
b. Inventory of unused delivery supplies, $1,430
c. Inventory of unused office supplies, $186
d. Estimated depreciation on the building, $14,400
e. Estimated depreciation on the trucks, $15,450
f. Estimated depreciation on the office equipment, $2,700
g. The company credits the lockbox fees of customers who pay in advance to the Unearned Lockbox Fees account. Of the amount credited to this account during the year, $5,630 had been earned by August 31.
h. Lockbox fees earned but unrecorded and uncollected at the end of the accounting period, $816
i. Accrued but unpaid truck drivers' wages at the end of the year, $1,920
2. Prepare an income statement, a statement of retained earnings, and a balance sheet for the company.
3. Prepare adjusting and closing entries from the work sheet.
4. Can the work sheet be used as a substitute for the financial statements? Explain your