WAQAS1ACA ONLY
Cocoa35
comp._problem_supplement_p2.docxCOMPREHENSIVE PROBLEM SUPPLEMENT P2
Preparation of a Worksheet, Financial Statements, and Adjusting and Closing Entries
At the end of the fiscal year, Siglo delivery Service, Inc.’s trial balance appeared as follows:
Siglo Delivery Service, Inc.
Trial balance
August 31, 2014
Cash 10072
Accounts receivable 29314
Prepaid Insurance 5340
Delivery Supplies 14700
Office Supplies 2460
Land 15000
Building 196,000
Accumulated depreciation—Building 53400
Trucks 103,800
Accumulated Depreciation Trucks 30,900
Office Equipment 15,900
Accumulated Depreciation—Office Equipment 10,800
Accounts Payable 9396
Unearned Lockbox fees 8340
Mortgage Payable 72,000
Common Stock 100,000
Retained Earnings 28730
Dividends 30,000
Delivery service revenue 283,470
Lockbox Fee earned 28800
Truck Drivers Wages Expense 120,600
Office Salaries Expense 44,400
Gas, Oil, and Truck Repairs Expense 31050
Interest Expense 7200 ____________
625,836 625,836
REQUIRED
1. Enter the trial balance amounts in the Trial Balance columns of a worksheet and complete the worksheet using the information that follows:
a. Expired insurance, $3060
b. Inventory of unused delivery supplies, $1430
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 customer who pay in advance to the Unearned lockbox fees account. Of the amount credited, to this account during the year, $5630 had been earned by August 31.
h. Lockbox fee 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, $1920
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 worksheet.
4. Can the worksheet be used as a substitute for the financial statement? Explain your answer.
