Question

At the end of the fiscal year, Siglo Delivery Service’s trial balance appeared as follows.

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, $3060
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 owner’s equity, and a balance sheet for the company. Assume the owner, Raul Siglo, made no additional investments.
3. Prepare adjusting, closing, and, when necessary, reversing entries from the work sheet.
4. Can the work sheet be used as a substitute for the financial statements? Explain youranswer.


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  • CreatedMarch 26, 2014
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