P 4. At the end of fiscal year, the trial balance of Reed delivery service appeared as shown below.
Reed delivery service
August 31, 2010
Accounts receivable 29,314
Prepaid insurance 5,340
Delivery supplies 14,700
Office supplies 2,460
Accumulated depreciation-building $53,400
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
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.
A preparation of a work sheet, financial statements and adjusting are examined.
Preparation of Financial Statements from the Adjusted Trial Balance Sheet
Attached are the adjusted balance sheets for Coopertown Suppliers, Inc. Please help me prepare a financial statement from these.View Full Posting Details