Question

Murphy Delivery Service completed the following transactions during December 2018 

Dec.1 Murphy Delivery Service began operations by receiving $ 13,000 cash and Dec. 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.

1 Paid $ 600 cash for a six-month insurance policy. The policy begins December 1 .

4 Paid $ 750 cash for office supplies.

12 Performed delivery services for a customer and received $ 2,200 cash.

15. Completed a large delivery job, billed the customer, $ 3,300, and received a Promise to collect the 53,300 within one week.

18 Paid employee salary. $ 800.

20 Received' 57,000 cash for performing delivery services.

22 Collected $ 2000 in advance for delivery service to be performed later.

25 Collected $ 3.300 cash from customer on account.

27 Purchased fuel for the truck, paying $ 150 on account, (Credit Accounts Payable)

28 Performed delivery services on account, $ 1,400.

29 Paid office rent, $ 1,400, for the month of becember.

30 Paid $ 150 an account.

31 Cash dividends of $ 2,500 were paid to stockholders.

Requirements

1. Recond 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 31,2018 .

4. Prepare a worksheet as of December 31, 2018 (optional).

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

Answer 1