Question

Matthews Delivery Service completed the following transactions during December 2014:
Dec. 1 Matthews Delivery Service began operations by receiving $ 6,000 cash and a truck with a fair value of $ 20,000 from Robert Matthews. The business issued Matthews shares of common stock in exchange for this contribution.
1 Paid $ 600 cash for a 6-month insurance policy. The policy begins December 1.
4 Paid $ 300 cash for office supplies.
12 Performed delivery services for a customer and received $ 800 cash.
15 Completed a large delivery job, billed the customer, $ 1,500, and received a promise to collect the $ 1,500 within one week.
18 Paid employee salary, $ 700.
20 Received $ 12,000 cash for performing delivery services.
22 Collected $ 600 in advance for delivery service to be performed later.
25 Collected $ 1,500 cash from customer on account.
27 Purchased fuel for the truck, paying $ 200 with a company credit card. (Credit Accounts Payable)
28 Performed delivery services on account, $ 900.
29 Paid office rent, $ 600, for the month of December.
30 Paid $ 200 on account.
31 Cash dividends of $ 2,100 were paid to stockholders.

Requirements
1. Record each transaction in the journal. Explanations are not required.
2. Post the transactions in the T-accounts using the following chart of accounts.
Cash ................ Retained Earnings
Accounts Receivable ........ Dividends
Office Supplies .......... Income Summary
Prepaid Insurance ......... Service Revenue
Truck ................ Salaries Expense
Accumulated Depreciation—Truck .. Depreciation Expense—Truck
Accounts Payable ........... Insurance Expense
Salaries Payable ........... Fuel Expense
Unearned Revenue ......... Rent Expense
Common Stock ........... Supplies Expense
3. Prepare an unadjusted trial balance as of December 31, 2014.
4. Prepare a worksheet as of December 31, 2014. (Optional)
5. Journalize the adjusting entries using the following adjustment data. Post adjusting entries to the T-accounts.
Adjustment data:
a. Accrued Salaries Expense, $ 700.
b. Depreciation was recorded on the truck using the straight-line method. Assume a useful life of 5 years and a salvage value of $ 5,000.
c. Prepaid Insurance for the month has expired.
d. Office Supplies on hand, $ 200.
e. Unearned Revenue earned during the month, $ 500.
f. Accrued Service Revenue, $ 450.
6. Prepare an adjusted trial balance as of December 31, 2014.
7. Prepare Matthews Delivery Service’s income statement and statement of retained earnings for the month ended December 31, 2014, and the classified balance sheet on that date. On the income statement, list expenses in decreasing order by amount—that is, the largest expense first, the smallest expense last.
8. Journalize the closing entries and post to the T-accounts.
9. Prepare a post- closing trial balance as of December 31, 2014.



$1.99
Sales9
Views382
Comments0
  • CreatedJanuary 16, 2015
  • Files Included
Post your question
5000