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Preparation of a work Sheet

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At the end of the current fiscal year, the trial balance of Natchez Delivery Service appeared as shown in the PowerPoint slide (attached).
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, $3,060.

B. Inventory of unused delivery supplies, $1,430.

C. Inventory of unused office supplies, $186.

D. Estimated depreciation, building, $14,400.

E. Estimated depreciation, trucks, $15,450.

F. Estimated depreciation, office equipment, $2,700.

G. The company credits the lock-box fees of customers who pay in advance to the Unearned Lock-box Fees account. Of the amount credited to this account during the year, $5,630 had been earned by August 31.

H. Lock-box fees earned but unrecorded and collected at the end of the accounting period, $816.

I. Accrued but unpaid drivers' wages at the end of the year, $1,920.

2. Build an income statement, a statement of owner's equity, and a balance sheet. Assume no additional investments Honoree Natchez.

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? Please explain why or why not.

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Preparation of a work sheet is examined.

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Preparation of a work sheet, financial statements, and adjusting

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P 4. At the end of fiscal year, the trial balance of Reed delivery service appeared as shown below.

Reed delivery service
Trial balance
August 31, 2010

Cash $10,072
Accounts receivable 29,314
Prepaid insurance 5,340
Delivery supplies 14,700
Office supplies 2,460
Land 15,000
Building 196,000
Accumulated depreciation-building $53,400
Trucks 103,800
Accumulated depreciation-trucks 30,900
Office equipment 15,900
Accumulated depreciation-office equipment 10,800
Accounts payable 9,396
Unearned lockbox fees 8,340
Mortgage payable 72,000
N. Reed, capital 128,730
N. Reed, withdrawals 30,000
Delivery service revenue 283,470
Lockbox fees earned 28,800
Truck drivers' wage expense 120,600
Office salaries expense 44,400
Gas, Oil, and truck repairs expense 31,050
Interest expense 7,200
$625,836 $625,836

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, $3,060
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 truck, $15,450
f) Estimated depreciation on the office equipment, $2,700
g) The company credits the 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 not recorded 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, Natalie Reed, 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 your answer.

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