At the end of the fiscal year, Siglo Delivery Services trial balance appeared as follows. Required 1.

At the end of the fiscal year, Siglo Delivery Service’s trial balance appeared as follows.

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, $3060

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 fees of customers who pay in advance to the Unearned 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 unrecorded 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, Raul Siglo, 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 youranswer.

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Siglo Delivery Service Trial Balance August 31, 2014 Cash Accounts Receivable Prepaid Insurance Delivery Supplies Office Supplies Land Building Accumulated Depreciation-Building Trucks Accumulated Depreciation- Trucks Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable Unearned Lockbox Fees Mortgage Payable R. Siglo, Capital R. Siglo, Withdrawals Delivery Service Revenue Lockbox Fees Earned Truck Drivers' Wages Expense Office Salaries Expense Gas, Oil, and Truck Repairs Expense Interest Expense 10,072 29,314 5,340 14,700 2460 15,000 196,000 53,400 103,800 30,900 15,900 10,800 9,396 8,340 72,000 128,730 30,000 283,470 28,800 120,600 44400 31,050 7,200 625,836 625,836