P 4. At the end of the fiscal year, the trial balance of Reed Delivery Service a

Question

P 4. At the end of the fiscal year, the trial balance of Reed Delivery Service appeared as shown below.       

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 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.

3. Prepare adjusting, closing, and, when necessary, reversing entries from the work sheet

Explanation / Answer

ADJUSTING ENTRIES DR (CR) a) Insurance Expense 3,060 Prepaid Insurance (3,060) b) Delivery Supplies Expense 13,270 Delivery Supplies (13,270) c) Office Supplies Expense 2,274 Office Supplies (2,274) d) Depreciation Exp-Building 14,400 Accum Depn- Building (14,400) e)Depreciation Exp-Trucks 15,450 Accum Depn- Trucks (15,450) f) Depreciation Exp-Office Equipment 2,700 Accum Depn- Building (2,700) g)Unearned Lockbox Fees 5,630 Lockbox Fees Earned (5,630) h)Lockbox Fees Receivable 816 Lockbox Fees Earned (816) i)Truck Driver Wages Expense 1,920 Truck Driver Wages Payable (1,920)

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