Comprehensive Problem 1 for Chapters 1-4:

Miller Delivery Service completed the following transactions during December 2016:

Requirements

1. Record each transaction in the journal using the following chart of accounts. Explanations are not required.

2. Post the transactions in the T-accounts.

3. Prepare an unadjusted trial balance as of December 31, 2016.

4. (Not Required) Prepare a worksheet as of December 31, 2016. (optional)

5. Journalize the adjusting entries using the following adjustment data and also by reviewing the journal entries prepared in Requirement 1. Post adjusting entries to the T-accounts.

Adjustment data:

a. Accrued Salaries Expense, $1,000.

b. Depreciation was recorded on the truck using the straight-line method. Assume a useful life of five years and a salvage value of $5,000.

c. Prepaid Insurance for the month has expired.

d. Office Supplies on hand, $100.

e. Unearned Revenue earned during the month, $300.

f. Accrued Service Revenue, $650.

6. Prepare an adjusted trial balance as of December 31, 2016.

7. Prepare Miller Delivery Service's income statement and statement of retained earnings for the month ended December 31, 2016, and the classified balance sheet on that date. On the income statement, list expenses in decreasing order by amountthat 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, 2016.