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Background:

Matthews Delivery Service completed the following transactions during December 2014.
 

Adjustment data:

a. Accrued Salaries Expense, $1700
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.

Assignment:

Requirements:

The accounts used by the business are provided in the Chart of Accounts (click on "Chart of Accounts" to view.)

 

  1. Record each December transaction in the general journal.  Explanations are not required.
  2. Review each of the accounts in the ledger to see the results of posting the journal entries, including the changes in each account as well as the unadjusted balance. (Click on "General Ledger" to view.)
  3. Review the unadjusted trial balance as of December 31, 2014. Note: This is an unadjusted trial balance since the adjusting entries have not yet been prepared and posted. (Click on "Trial Balance" to view.)
  4. Journalize the adjusting entries.  Explanations are not required.
  5. Review each of the accounts in the ledger to see the results of posting the adjusting entries, including the changes in each account as well as the adjusted balance. (Click on "General Ledger" to view.)
  6. Review the adjusted trial balance as of December 31, 2014. Note: This is an adjusted trial balance since the adjusting entries have been prepared and posted. (Click on "Trial Balance" to view.)
  7. Review the income statement for the month ended December 31, 2014 (click on "Income Statement" to view) and the classified balance sheet on December 31, 2014 (click on "Balance Sheet" to view).
  8. Journalize the closing entries. Explanations are not required.
  9. Review the post-closing trial balance as of December 31, 2014.

Transactions:

12/01/2014
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.
12/01/2014
Paid $600 cash for a 6-month insurance policy. The policy begins December 1.
12/04/2014
Paid $300 cash for office supplies.
12/12/2014
Performed delivery services for a customer and received $800 cash.
12/15/2014
Completed a large delivery job, billed the customer, $1,500, and received a promise to collect the $1,500 within one week.
12/18/2014
Paid employee salary, $700.
12/20/2014
Received $12,000 cash for performing delivery services.
12/22/2014
Collected $600 in advance for delivery service to be performed later.
12/25/2014
Collected $1,500 cash from customer on account.
12/27/2014
Purchased fuel for the truck, paying $200 with a company credit card. (Credit Accounts Payable.)
12/28/2014
Performed delivery services on account, $900.
12/29/2014
Paid office rent, $600, for the month of December.
12/30/2014
Paid $200 on account.
12/31/2014
Cash dividends of $2,100 were paid to stockholders.
  • 8 years ago
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