The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31.
1. Use the following information about the company’s adjustments to complete a 10-column work sheet.

a. Unrecorded depreciation on the trucks at the end of the year is $40,000.
b. Total amount of accrued interest expense and interest payable at year-end should be $6,000.

c. Cost of unused supplies still available at year-end is $2,000.

2. 

(a) Prepare the year-end closing entries for this company. 

(b) Determine the retained earnings to be reported on its year-end balance sheet. 

The Retained Earnings account balance was $257,000 on December 31 of the prior year.

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Unadjusted Trial Balance Account Title Cash Accounts receivable Supplies Trucks Accumulated depreciation-Trucks Land Accounts payable Interest payable Long-term notes payable Common stock Retained earnings Dividends Delivery revenue Depreciation expense-Trucks Salaries expense Supplies expense Interest expense Repairs expense Totals Debit $ 16,000 34,000 5,000 350,000 160,000 34,000 40,000 110,000 15,000 5,000 10,000 $779,000 Credit $ 80,000 24,000 5,000 100,000 50,000 257,000 263,000 $779,000