Exercise 4-7 Preparing a work sheet and recording closing entries LO P1, P2

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 $8,231.
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 $1,700.

1. Use the above information about the companys 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 $129,527 on December 31 of the prior year.

DYLAN DELIVERY COMPANY Work Sheet For Year Ended December 31 Adjusted Trial Adjustments Balance Unadjusted Trial Balance Income Statement Dr Cr Dr Cr Cr Dr Cr $ $ 15,000 24,500 Dr $ 15,000 24,500 1,700 220,000 $ 1,000 2,700 220,000 Balance Sheet and Statement of Owner's Equity Dr Cr 15,000 24,500 1,700 220,000 $ 88,231 140,000 23,550 8,000 100,000 129,527 31,000 $ 80,000 8,231 $ 88,231 140,000 140,000 23,550 2,000 100,000 Account Title Cash Accounts receivable Office supplies Trucks Accumulated depreciation-Trucks Land Accounts payable Interest payable Long-term notes payable S. Dylan, Capital S. Dylan, Withdrawals Delivery fees earned Depreciation expense Trucks Salaries expense Office supplies expense Interest expense Repairs expenseTrucks Totals Net Income 6,000 23,550 8,000 100,000 129,527 129,527 31,000 31,000 274,350 274,350 $ 274,350 $ 8,231 30,000 115,227 20,000 2,000 9,000 1,000 6,000 38,231 115,227 21,000 8,000 9,000 $623,658 $ 38,231 115,227 21,000 8,000 9,000 191.458 lolololo $ 609,427 $ 609,427 $ 15,231 $ 15,231 s 623,658 274,350 432,200 349,308 82,892 $ 274,350 82,892 432,200 Totals $274,350 $ 432,200 No Date General Journal Debit Credit 1 December 31 Delivery fees earned 274,350 Income summary 274,350 2 December 31 Income summary 172,648 Depreciation expenseTrucks 38,321 X Salaries expense 115,227 Office supplies expense 2,100 X Repairs expenseTrucks 9,000 Interest expense 8,000 3 December 31 Income summary 101,702 S. Dylan, Capital 101,702 4 December 31 S. Dylan, Withdrawals 31,000 31,000 Determine the capital amount to be reported on the December 31, balance sheet. Note: S. Dylan, Capital was $129,527 on December 31 of the prior year. S. Dylan, Capital $ 200,229