Preparation of a Work Sheet, Financial Statements, and Adjusting and Closing Entries The trial…
- March 06, 2021/ Questions
Preparation of a Work Sheet, Financial Statements, and Adjusting and Closing Entries The trial balance on the opposite page was taken from the ledger of Wylie Package Delivery Corporation on August 31, 20×7, the end of the company’s fiscal year. Required 1. Enter the trial balance amounts in the Trial Balance columns of a work sheet and complete the work sheet using the following information: a. Expired insurance, $1,530. b. Inventory of unused delivery supplies, $715. c. Inventory of unused office supplies, $93. d. Estimated depreciation, building, $7,200. e. Estimated depreciation, trucks, $7,725. f. Estimated depreciation, office equipment, $1,350. 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, $2,815 had been earned by August 31. h. Lockbox fees earned but unrecorded and uncollected at the end of the accounting period, $408. i. Accrued but unpaid truck drivers’ wages at the end of the year, $960. j. Management estimates federal income taxes to be $6,000. 2. Prepare an income statement, a statement of retained earnings, and a balance sheet. 3. Prepare adjusting and closing entries.