Question

1.

Requirement 1. Record each transaction in the journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.)

Requirement 1) Dec.1:Murphy Delivery Service began operations by receiving $13,000 cash and a truck with a fair value of $9,000 from Russ Murphy.The business issued Murphy

shares of common stock in exchange for this contribution.

-----------------------------------------------

Requirement 2)

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

   

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

------------------------------------------------------------------------------------------------

2.

Post the transactions in the T-accounts.

-----------------------------------------------------------------------

3.

Prepare an unadjusted trial balance as of December 31 , 2018.

----------------------------------------

4.

Prepare a worksheet as of December 31 ,2018.

-------------------------------

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, $ 800.
b.	Depreciation was recorded on the truck using the straight-line method. Assume a useful life of 5 years and a salvage value of $3,000.
c.	Prepaid Insurance for the month has expired.
d.	Office Supplies on hand, $ 450
e.	Unearned Revenue earned during the month, $ 700
f.	Accrued Service Revenue, $ 450

6.

Prepare an adjusted trial balance as of

December 31 ,2018

7.

Prepare Murphy Delivery Service's income statement and statement of retained earnings for the month ended December 31 2018

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, 2018

Answer 1