Question

ACC-112 Plass Project

ACC-112 Student Class Project

Part 1

1.

Record each of the following transactions in the journal. Explanations are not required.

Dec. 01, 2019

Dec. 02

Paid $1,000 cash for a four-month insurance policy. This policy begins December 1st.

Dec. 03

Paid $600 cash for office supplies.

Dec. 05

Performed delivery services for a customer and received $2,000 cash.

Dec. 07

Completed a delivery job, billed the customer for $2,500 and received a promise to collect the $2,500 within one week.

Dec. 08

Start writing a Bond contract to raise $100,000 for more trucks and a garage type building to hold them in.

Dec. 09

Purchased $300 of fuel for the truck, on account.

Dec. 12

Received $45,000 cash for performing delivery services.

Dec. 13

Collected $800 in advance for delivery services to be performed later.

Dec. 15

Collected $1,500 cash from a customer on account.

Dec. 18

Paid employee salary, $2,000.

Dec. 21

Issued $100,000, 5%, 10 year Bonds @ 105. Interest to be paid Jun 30 & Dec 30 each year starting in June of next year.

Dec. 22

Performed delivery services on account for $700.

Dec. 23

Paid office rent of 1,600 for the month of December.

Dec. 25

Dec. 27

Submitted an order to purchase two more trucks with an estimated purchase price of $35,000 each.

Dec. 28

Paid $300 on account.

Dec. 30

2.

3.

Prepare an unadjusted trial balance as of December 31, 2019.

Part 2

4.

Prepare a worksheet as of December 31, 2019.

5

Dec. 31

a. Accrued salaries expense is $1,000.

Dec. 31

b. Depreciation for all assets is recorded using the modified Half-month Convention for depreciation.

Dec. 31

c. Prepaid Insurance for the month has expired.

Dec. 31

d. Office supplies on hand equal $100.

Dec. 31

e. Unearned Revenue that has been earned during the month of December equals $700.

Dec. 31

f. Accrued service revenue = $650.

6.

Prepare an adjusted trial balance as of December 31, 2019.

7.

8.

Journalize the closing entries and post to the General Ledger accounts.

9.

Miller Delivery Service Inc began operations by receiving $35,000 cash and a truck with a fair market value of $25,000,

salvage value of 1,000, and a 5 year Useful life from Robert Miller. The business issued miller 40,000 shares of the $1 Par

common stock in exchange for this contribution

Answer 1

Dec 2	Insurance A/c Dr To Cash A/c	1000	1000
Dec 3	Office Supplies A/c Dr   To Cash A/c	600	600
Dec 5	Cash A/c Dr sales A/c ( Delivery income Received)	2000	2000
Dec 7	Customer A/c Dr To Sales A/c	2500	2500
Dec 8	No Entry
Dec 9	Fuel Expense A/c Dr To Cash A/c	300	300
Dec 12	Cash A/c Dr To Sales A/c	45000	45000
Dec 13	Cash A/c Dr To Customer Advance A/c	800	800
Dec 15	Cash A/c Dr To Sales A/c	1500	1500
Dec 18	Salary A/c Dr To Cash A/c	2000	2000
Dec 21	Cash A/c Dr To 5% Bond A/c	100000	100000
Dec 22	Cash A/c Dr To Sales A/c	700	700
Dec 23	Rent A/c Dr To Cash A/c	1600	1600
Dec 27	No Entry
Dec 28	Purchase advance Dr To Cash A/c	300	300

Trail Balance

Particulars	DEBIT	CREDIT
Insurance A/c	1000
Cash A/c	144200
Office Supplies A/c	600
Sales A/c		51700
Customer A/c	2500
Fuel Expense A/c	300
Customer Advance A/c		800
Salary A/c	2000
5% Bond A/c		100000
Rent A/c	1600
Purchase advance	300
TOTAL	152500	152500

Dec. 31	Salary A/c Dr To Salary Outstanding A/c	1000	1000
Dec. 31	Depreciatin A/c Dr To Truck A/c	2400	2400
Dec. 31	Prepaid Insurance A/c Dr To Insurance A/c	750	750
Dec. 31	Office Supply Alc Dr To Trading A/c	1000	1000
Dec. 31	Un Earned Income A/c Dr To Revenu Alc	700	700
Dec. 31	Customer A/c Dr To Sales A/c	650	650