Preparation of a Work Sheet, Financial Statements, and Adjusting, Closing, and Reversing Entries

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

Siglo Delivery Service
Trial Balance
August 31, 2014
Cash	10,072
Accounts Receivable	29,314
Prepaid Insurance	5,340
Delivery Supplies	14,700
Office Supplies	2,460
Land	15,000
Building	196,000
Accumulated Depreciation - Building		53,400
Trucks	103,800
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
R. Siglo, Capital		128,730
R. Siglo, Withdrawals	30,000
Delivery Service Revenue		283,470
Lockbox Fees Earned		28,800
Truck Drivers' Wages Expense	120,600
Office Salaries Expense	44,400
Gas, Oil, and Truck Repairs Expense	31,050
Interest Expense	7,200
	625,836	625,836

The following end-of-year information is also available:

Expired insurance, $3,060.

Inventory of unused delivery supplies, $1,430.

Inventory of unused office supplies, $186.

Estimated depreciation on the building, $14,400.

Estimated depreciation on the trucks, $15,450.

Estimated depreciation on the office equipment, $2,700.

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.

Lockbox fees earned but unrecorded and uncollected at the end of the accounting period, $816.

Accrued but unpaid truck drivers wages at the end of the year, $1,920.

3a. Prepare the adjusting entries.

GENERAL JOURNAL

page

DATE

ACCOUNT TITLE

DOC. NO.

POST. REF.

DEBIT

CREDIT

1

2014 Aug. 31

1

2

2

3

To record expired insurance

3

4

4

5

Aug. 31

5

6

6

7

To record delivery supplies used

7

8

8

9

Aug. 31

9

10

10

11

To record office supplies used

11

12

12

13

Aug. 31

13

14

14

15

To record depreciation for Building for the year

15

16

16

17

Aug. 31

17

18

18

19

To record depreciation for Trucks for the year

19

20

20

21

Aug. 31

21

22

22

23

To record depreciation for Office Equipment for the year

23

24

24

25

Aug. 31

25

26

26

27

To record earned lockbox fees

27

28

28

29

Aug. 31

29

30

30

31

To record fees earned that had not been recorded

31

32

32

33

Aug. 31

33

34

34

35

To record accrued truck drivers' wages

35

36

36