the following unadjusted trial balance contains the accounts and balances of dylan delivery company as of…

the following unadjusted trial balance contains the accounts and balances of dylan delivery company as of december 31.\n1. use the following information about the company’s adjustments to complete a 10 - column work sheet.\n a. unrecorded depreciation on the trucks at the end of the year is $40,000.\n b. total amount of accrued interest expense at year - end is $6,000.\n c. cost of unused supplies still available at year - end is $2,000.\n2. (a) prepare the year - end closing entries for this company. (b) determine the capital amount to be reported on its year - end balance sheet. note: the s. dylan, capital account balance was $307,000 on december 31 of the prior year.\n\nunadjusted trial balance\n|account title|debit|credit|\n|--|--|--|\n|cash|$ 16,000||\n|accounts receivable|34,000||\n|supplies|5,000||\n|trucks|350,000||\n|accumulated depreciation—trucks||$ 80,000|\n|land|160,000||\n|accounts payable||24,000|\n|interest payable||5,000|\n|long - term notes payable||100,000|\n|s. dylan, capital||307,000|\n|s. dylan, withdrawals|34,000||\n|delivery revenue||263,000|\n|depreciation expense—trucks|40,000||\n|salaries expense|110,000||\n|supplies expense|15,000||\n|interest expense|5,000||\n|repairs expense|10,000||\n|totals|$779,000|$779,000|

the following unadjusted trial balance contains the accounts and balances of dylan delivery company as of december 31.\n1. use the following information about the company’s adjustments to complete a 10 - column work sheet.\n a. unrecorded depreciation on the trucks at the end of the year is $40,000.\n b. total amount of accrued interest expense at year - end is $6,000.\n c. cost of unused supplies still available at year - end is $2,000.\n2. (a) prepare the year - end closing entries for this company. (b) determine the capital amount to be reported on its year - end balance sheet. note: the s. dylan, capital account balance was $307,000 on december 31 of the prior year.\n\nunadjusted trial balance\n|account title|debit|credit|\n|--|--|--|\n|cash|$ 16,000||\n|accounts receivable|34,000||\n|supplies|5,000||\n|trucks|350,000||\n|accumulated depreciation—trucks||$ 80,000|\n|land|160,000||\n|accounts payable||24,000|\n|interest payable||5,000|\n|long - term notes payable||100,000|\n|s. dylan, capital||307,000|\n|s. dylan, withdrawals|34,000||\n|delivery revenue||263,000|\n|depreciation expense—trucks|40,000||\n|salaries expense|110,000||\n|supplies expense|15,000||\n|interest expense|5,000||\n|repairs expense|10,000||\n|totals|$779,000|$779,000|

Answer

Explanation:

Step1: Prepare closing entries

Closing entry for revenue

Debit Delivery revenue $263,000 and credit Income Summary $263,000. This closes the revenue account to Income Summary.

Closing entry for expenses

Debit Income Summary: Depreciation expense - Trucks $40,000 + Salaries expense $110,000+ Supplies expense ($5,000 - $2,000)+ Interest expense ($5,000 + $6,000)+ Repairs expense $10,000 = $174,000 Credit Depreciation expense - Trucks $40,000, Salaries expense $110,000, Supplies expense $3,000, Interest expense $11,000, Repairs expense $10,000. This closes all expense accounts to Income Summary.

Closing entry for Income Summary

Net income = Revenue - Expenses = $263,000 - $174,000 = $89,000 Debit Income Summary $89,000 and credit S. Dylan, Capital $89,000. This transfers the net - income to the capital account.

Closing entry for withdrawals

Debit S. Dylan, Capital $34,000 and credit S. Dylan, Withdrawals $34,000. This closes the withdrawals account.

Step2: Calculate year - end capital balance

Beginning capital balance = $307,000 Add net income = $89,000 Subtract withdrawals = $34,000 Year - end capital balance = $307,000 + $89,000 - $34,000 = $362,000

Answer:

  1. Closing entries:
    • Debit Delivery revenue $263,000; Credit Income Summary $263,000
    • Debit Income Summary $174,000; Credit Depreciation expense - Trucks $40,000, Salaries expense $110,000, Supplies expense $3,000, Interest expense $11,000, Repairs expense $10,000
    • Debit Income Summary $89,000; Credit S. Dylan, Capital $89,000
    • Debit S. Dylan, Capital $34,000; Credit S. Dylan, Withdrawals $34,000
  2. (b) The capital amount to be reported on the year - end balance sheet is $362,000.