Question

The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31.

1. Unrecorded depreciation on the trucks at the end of the year is $7,956.
2. The total amount of accrued interest expense at year-end is $8,000.
3. The cost of unused office supplies still available at year-end is $1,600.

  
1. Use the above information about the company’s adjustments to complete a 10-column work sheet.
2a. Prepare the year-end closing entries for Dylan Delivery Company as of December 31.
2b. Determine the capital amount to be reported on the December 31, balance sheet. Note: S. Dylan, Capital was $313,016 on December 31 of the prior year.

DYLAN DELIVERY COMPANY Work Sheet For Year Ended December 31 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet and Statement of Owner’s Equity Account Title Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Cash $14,500 Accounts receivable 28,500 Office supplies 2,600 Trucks 380,000 Accumulated depreciation—Trucks $50,000 Land 130,000 Accounts payable 22,765 Interest payable 4,000 Long-term notes payable 90,000 S. Dylan, Capital 313,016 S. Dylan, Withdrawals 37,000 Delivery fees earned 265,205 Depreciation expense—Trucks 20,000 Salaries expense 111,386 Office supplies expense 11,000 Interest expense 4,000 Repairs expense—Trucks 6,000 Totals $744,986 $744,986 $0 $0 $0 $0 0 0 Net Income Totals $0 $0

Answer 1

DYLAN Delivery Company
Work Sheet - For the year Ended December 31
Account Names	Unadjusted Trial Balance	Adjustments	Adjusted Trial Balance	Income Statement	Balance Sheet
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$14,500				$14,500				$14,500
Accounts Receivable	$28,500				$28,500				$28,500
Office Supplies	$2,600			$1,000	$1,600				$1,600
Trucks	$380,000				$380,000				$380,000
Accumulated Depreciation-Furniture		$50,000		$7,956		$57,956				$57,956
Land	$130,000				$130,000				$130,000
Accounts Payable		$22,765				$22,765				$22,765
Interest Payable		$4,000		$8,000		$12,000				$12,000
Note Payable		$90,000				$90,000				$90,000
S.Dylan Cpaitotal		$313,016				$313,016				$313,016
Withdrawals	$37,000				$37,000				$37,000
Delivery Fees Received		$265,205				$265,205		$265,205
Depreciation Expense	$20,000		$7,956		$27,956		$27,956
Salaries Expense	$111,386				$111,386		$111,386
Officec Supplies Expense	$11,000		$1,000		$12,000		$12,000
Interest Expense	$4,000		$8,000		$12,000		$12,000
Repairs Expense	$6,000				$6,000		$6,000
Tototal	$744,986	$744,986	$16,956	$16,956	$760,942	$760,942	$169,342	$265,205	$591,600	$495,737
Net Income							$95,863			$95,863
							$265,205	$265,205	$591,600	$591,600

Journal Entry - Year End Closing Entry
Account Tittle	Debit	Credit
Income Summary	$169,342.00
Depreciation Expense		$27,956
Salaries Expense		$111,386
Officec Supplies Expense		$12,000
Interest Expense		$12,000
Repairs Expense		$6,000
Delivery Fees Received	$265,205.00
Income Summary		$265,205.00
Income Summary	$95,863.00
S.Dylan Cpaitotal		$95,863.00
S.Dylan Cpaitotal	$37,000.00
S.Dylan Withdrawl		$37,000.00

Computation of Ending Capitla Balance
Beg Capitotal Balance		313016
Add: Net Income		$95,863.00
Less: Drawing		$37,000.00
End Capitotal Balance		$371,879.00