Work Problems 1
09, At the end of the first three months of operation, Evergreen Repairs, Inc.'s trial balance is as
Evergreen Repair, Inc.
March 31, 2014
Accounts Receivable 5,872
Office supplies 970
Repair, Rent 1,500
Accounts Payable 2,629
Unearned Repair Revenue 1,146
Common Stock 5, 000
Retained Earning 6,314
Repair Revenue 12,236
Wages Expense 3,580
Office Cleaning Expense 420
Evergreen has hired an accountant to prepare financial statements to determine how well his company is doing after three months. Upon examining the accounting records, the account finds tat following items interest:
(a) An inventory of office supplies reveals supplies on hand of $469,
(b) The Prepaid Rent account includes the rent for the first three months plus deposit for April's rent.
(c) Depreciation on the equipment on the equipment for the first three months is $560.
(d) The balance of the Unearned Repair Revenue account represents a 12-Month service contract paid in advance on February 1.
(e) On March 31, accrued wages total $168.
(f) Federal income taxes for the three months are estimated t be $1,250.
All adjustments affect one balance sheet account and on income statement account. For each of these situations, show the accounts affected, the amount of the adjustment(using a + or - to indicate an increase or decrease) and the balance of the account after the adjustment in the following format.
Balance Sheet Amount, Amount of Adjudtment(+ or -),Balance After Adjustment, Income Statement Account, Amount of Adjustment (+ or -),Balance After Adjustment.
Work Problem 2.
Preparation of a Work Sheet, Financial Statements, and Adjusting and Closing Entries.
At the end of the fiscal year, Siglo Delivery Services, Inc's trial balance appeared as follows
Siglo Delivery Services, Inc
August 31, 2014
Accounts Receivable 29,314
Prepaid Insurance 5,340
Delivery Supplies 14,700
Office Supplies 2,460
Accumulated Depreciation-Building 53,400
Accumulated Depreciation-truck 30,900
Office Equipment 15,900
Accumulate Depreciation-Office equipment 10,800
Account Payable 9,396
Unearned Lock Box Fees 8,340
Mortgage Payable 72,00
Common Stock 1,00,000
Retained Earnings 28,730
Dividend 30,000 2,83,470
Delivery Service Revenue 2,83,470
Lockbox Fee Earned 28,800
Truck Drivers Wages Express 1,20,600
Office Salary Expense 44,400
Gas, Oil, and Truck Repairs Expense 31,050
Interest Expense 7,200
1.Enter the trial balance amount in the Trial Balance columns of a worksheet and complete the worksheet 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 trucks $15,450.
(f) Estimated depreciation on the office equipment $2,700.
(g) The company credits the lockbox fee of customers who pay in advance to the Unearned Lockbox fees account. Of the amount credit to this account during the year, $5,630 had been earned by August 31,
(h) Lockbox fees earned but unrecorded and uncollected at the end of the account period, $816.
(i) Accrued but unpaid truck drivers wages at the end of the year, $1,920.
2.Prepare an income statement, a statement retained earnings, and a balance sheet for the company.
3. The prepareis adjusting and closing entries from the worksheet
4.Can the work sheet be used as a substitute for the financial statement? Explain your answer