Preparation of a Work Sheet, Financial Statements, and Adjusting and Closing Entries.
At the end of the fiscal year, Siglo Delivery Services, Inc's trial balance appeared as follows
Siglo Delivery Services, Inc
Trial Balance
August 31, 2014
|
Cash
|
10,072
|
|
|
Accounts Receivable
|
29,314
|
|
|
Prepaid Insurance
|
5,340
|
|
|
Delivery Supplies
|
14,700
|
|
|
Office Supplies
|
2,460
|
|
|
Land
|
15,000
|
|
|
Building
|
196,600
|
|
|
Accumulated Depreciation-Building
|
|
53,400
|
|
Truck
|
103,800
|
|
|
Accumulated Depreciation-truck
|
|
30,900
|
|
Office Equipment
|
15,900
|
|
|
Accumulate Depreciation-Office equipment
|
|
10,800
|
|
Account Payable
|
|
9,396
|
|
Unearned Lock Box Fees
|
|
8,340
|
|
Mortgage Payable
|
|
72,00
|
|
Common Stock
|
|
100,000
|
|
Retained Earnings
|
|
28,730
|
|
Dividend
|
30,000
|
283,470
|
|
Delivery Service Revenue
|
|
283,470
|
|
Lockbox Fee Earned
|
|
28,800
|
|
Truck Drivers Wages Express
|
120,600
|
|
|
Office Salary Expense
|
44,400
|
|
|
Gas, Oil, and Truck Repairs Expense
|
31,050
|
|
|
Interest Expense
|
7,200
|
|
|
|
625,836
|
625,836
|
Required
1.Enter the trial balance amount in the Trial Balance columns of a worksheet and complete the worksheet 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 fee of customers who pay in advance to the Unearned Lockbox fees account. Of the amount credit 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 account period, $816.
(i) Accrued but unpaid truck drivers wages at the end of the year, $1,920.
2.Prepare an income statement, a statement retained earnings, and a balance sheet for the company.
3. The prepareis adjusting and closing entries from the worksheet
4.Can the work sheet be used as a substitute for the financial statement? Explain your answer