Question

The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31. a. Unrecorded depreciation on the trucks at the end of the year is $8,231. b. The total amount of accrued interest expense at year-end is $8,000. c. The cost of unused office supplies still available at year-end is $700. 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 $298,027 on December 31 of the prior year. Complete this question by entering your answers in the tabs below.

Answer 1

Answer a.

Adjustments Debit Credit Income Statement Debit Credit Adjusted Trial Balance Debit Credit 15000 30000 700 350000 Balance Sheet Debit Credit 15000 30000 700 350000 78231 1000 8231 78231 150000 150000 3000 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 Expense-Trucks Totals Net Income Totals Unadjusted Trial Debit Credit 15000 30000 1700 350000 70000 150000 23550 5000 100000 298027 34000 274350 50000 115227 13000 5000 7000 770927 770927 23550 8000 100000 298027 34000 274350 8231 23550 8000 100000 298027 34000 274350 58231 115227 14000 8000 7000 202458 274350579700 507808 | 71892 71892 274350274350579700579700 58231 115227 14000 8000 7000 | 782158 1000 3000 | 12231 782158

Answer b.

Credit Debit 274,350 $ $ 274,350 $ 202,458 $ Date General Journal December 31 Delivery Fees Earned Income Summary December 31 Income Summary Depreciation Expense Trucks Salaries Expense Office Supplies Expense Interest Expense Repairs Expense-Trucks December 31 Income Summary S. Dylan, Capital December 31 S. Dylan, Capital S. Dylan, Withdrawals 58,231 115,227 14,000 8,000 7,000 $ 71,892 $ 71,892 $ 34,000 $ 34,000

Answer c.

Ending S. Dylan, Capital = Beginning S. Dylan, Capital + Net Income - S. Dylan, Withdrawals
Ending S. Dylan, Capital = $298,027 + $71,892 - $34,000
Ending S. Dylan, Capital = $335,919