E4-12 The following unadjusted trial balance contains the accounts and balances of Dalton Delivery Company as of December 31, 2011, its first year of operations.
(1) Use the following information about the company’s adjustments to complete a 10-column work sheet.
a. Unrecorded depreciation on the trucks at the end of the year is $35,000.
b. The total amount of accrued interest expense at year-end is $8,000.
c. The cost of unused office supplies still available at the year-end is $1,000.
(2) Prepare the year-end closing entries for this company, and determine the capital amount to be reported on its year-end balance sheet.
DALTON DELIVERY COMPANY
Work Sheet For Year Ended December 31, 2011
Cash $10,500 Accounts receivable 21,500 Office supplies 1,800 Trucks 210,000 Accum. Depreciation–Trucks $ 50,000 Land 130,000 Accounts payable 16,485 Interest payable 5,000 Long-term notes payable 90,000 V. Dalton, Capital 177,929 V. Dalton, Withdrawals 33,000 Delivery fees earned 192,045 Depreciation expense—Trucks 20,000 Salaries expense 80,659 Office supplies expense 14,000 Interest expense 5,000 Repairs expense—Trucks 5,000 Totals 531,459 531,459
2) Prepare the year-end closing entries for Dalton Delivery Company as of December 31, 2011.
3) Determine the capital amount to be reported on its year-end balance sheet.