The following unadjusted trial balance contains the accounts and balances of Dyl

Question

The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31, 2015 Exercise 4-7 Preparing a work sheet and recording closing 1. Use the following information about the company's adjustments to complete a 10-column work sheet. entries a. Unrecorded depreciation on the trucks at the end of the year is $40,000 b. The total amount of accrued interest expense at year-end is $6,000 c. The cost of unused office supplies stl available at year-end is $2,000. P1 P2 2. Prepare the year-end closing entries for this company, and determine the capital amount to be reported on its year-end balance sheet. usted Trial Balance Title 16,000 34,000 5,000 350,000 3 Cash Accounts receivable 5 Office supplies Trucks 7 Accumulated depreciation-Trucks 8 Land 9 Accounts payable 10 Interest payable 11 Long-term notes payable 2 S. Dylan, Capital 13 S. Dylan, Withdrawals 4 Delivery fees earned 15 Depreciation expense Truck 16 Salaries expense 7 Office supplies expense 18 Interest expense 19 Repairs expense-Trucks S 80,000 160,000 24,000 5,000 100,000 307,000 34,000 263,000 40,000 110,000 5,000 5,000 0,000 779,000 Check Adj. trial balance totals, $820,000; Net income, $39,000 Totals $779,000

Explanation / Answer

DYLAN DELIVERY COMPANY Work sheet For the year ended December 31,2015 Account title Unadjusted trial balance Adjustments Adjusted trial balance Income statement Balancesheet and statement of owners equity Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash $16,000 $16,000 $16,000 Account receivable $34,000 $34,000 $34,000 Office supplies $5,000 - $3,000 $2,000 $2,000 Trucks $3,50,000 $3,50,000 $3,50,000 Accumulated depreciation - equipment $80,000 $40,000 $1,20,000 $1,20,000 Land $1,60,000 $1,60,000 $1,60,000 Account payable $24,000 $24,000 $24,000 Interest payable $5,000 $1,000 $6,000 $6,000 Long term notes payable $1,00,000 $1,00,000 $1,00,000 s.dylan capital $3,07,000 $3,07,000 $3,12,000 s. dylan withdrawn $34,000 $34,000 Delivery fees earned $2,63,000 $2,63,000 $2,63,000 Depreciation- expense- truck $40,000 $40,000 $80,000 $80,000 Salaries expense $1,10,000 $1,10,000 $1,10,000 Office supplies expense $15,000 $3,000 $18,000 $18,000 Interest expense $5,000 $1,000 $6,000 $6,000 Repairs- expense trucks $10,000 $10,000 $10,000 Totals $7,79,000 $7,79,000 $44,000 $44,000 $8,20,000 $8,20,000 $2,24,000 $2,63,000 $5,62,000 $5,62,000 Net income $39,000 Totals $7,00,300 $7,00,300 $7,08,300 $7,08,300 $2,63,000 $2,63,000 $5,62,000 $5,62,000 Closing Entries Accoutn Tittle Debit Credit Depreciation Expense - Truck $40,000 Accumulated Depreciation $40,000 To Record Depreciation Interest Expense $1,000 Interets Payable $1,000 To Record Interets Expense Office Supplies Expense $3,000 office Supplies $3,000 To Record Office Supplies Expense S Dylan Capital Account Opening Capital Account $3,07,000 Net Income $39,000 Withdrawl -$34,000 Closing Capital Account $3,12,000

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