Comprehensive Problem 2 for Chapters 10-40

This comprehensive problem is a continuation of Comprehensive Problem 1. Murphy Delivery Service has completed closing entries and the accounting cycle for 2018. The business is now ready to record January 2019 transactions.

Jan 3 .collected 200 cash from customer on account

5. Purchased office supplies on account. $1.000

12. Performed delivery services for a customer and received $3,000 cash

15. Paid employee salary , including the amount owed on December 31. $4,100

18. performed delivery services on account 1,350

20. paid 300 on account

24. purchased fuel for the truck, paying 200 cash

27. completed the remaining work due for unearned revenue

28. paid office rent 2,200, for the month of January

30. collected 3,000 in advance for delivery service to be performed later

31. Murphy withdrew cash of 1,500

Requirements:

a. Prepare Murphy Delivery Services income statement and statement of owners equity for the month ended January 31, 2019, 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.

b. Calculate the following ratios as of January 31, 2019, for Murphy Delivery Service: return on assets, debt ratio, and current ratio.