Matthews delivery service completed the following transaction during December 2014
Dec 1 Matthews delivery service began operations by receiving $6000 cash and a truck with a fair value of $20000 from Robert Matthews. The business issue Matthews shares of common stock in exchange for this contribution.
Dec 1 Paid $600 cash for a 6 month insurance policy. The policy begins December 1
Dec 4 paid $300 cash for office supplies
Dec 12 performed delivery services for a customer and received $800 cash
Dec 15 completed a large delivery job, billed the customer 1500 and received a promise to collect the 1500 within one week
Dec 18 paid employee salary 700
Dec 20 received 12000 cash for performing delivery service
Dec 22 collected 600 in advanced for delivery service to be performed later
Dec 25 collected 1500 cash from customer on account
Dec 27 purchased fuel for the truck, paying 200 with a company credit card (credit accounts payable)
Dec 28 performed delivery services on account 900
Dec 29 paid office rent 600 for the month of December
Dec 30 paid 200 on account
Dec 31 cash dividends of 2100 were paid to stockholders
2) Post the transaction in the T-account
3) Prepare an unadjusted trial balance as of December 31,2014
4) Prepare a worksheet as of December 31,2014
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 5000
c) prepaid insurance for the month expired
d) office supplies on hand 200
e) unearned revenue earned during the month 500
f) accrued service revenue 450
6) prepare an adjusted trail balance as of December 31,2014
7) prepare matthew delivery service income statement and statement of retained earning for the month ended December 31,2014 and the classified balance sheet on that date. On the income statement, list expense 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-account
9) Prepare a post closing trial balance as of December 31,2014