Reference no: EM1322081

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.
Trial Balance
March 31, 2014

Cash	7,983
Accounts Receivable	5,872
Office supplies	970
Repair, Rent	1,500
Equipment	5,200
Accounts Payable		2,629
Unearned Repair Revenue		1,146
Common Stock		5, 000
Retained Earning		6,314
Dividends	1,800
Repair Revenue		12,236
Wages Expense	3,580
Office Cleaning  Expense	420
	27,325	27,325

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.

Required:

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
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	196,600
Accumulated Depreciation-Building		53,400
Truck	103,800
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		100,000
Retained Earnings		28,730
Dividend	30,000	283,470
Delivery Service Revenue		283,470
Lockbox Fee Earned		28,800
Truck Drivers Wages Express	120,600
Office Salary Expense	44,400
Gas, Oil, and Truck Repairs Expense	31,050
Interest Expense	7,200
	625,836	625,836

Required

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.