Question

1- Arab Delivery Service, Inc. completed the following transactions during January, 2019:

1. Shareholders invested in the business $30,000 cash and a delivery truck valued at $36,000 in exchange for common stock.
2. Purchased supplies for $1,500 cash.
3. Paid $2,750 for a one-year insurance policy, effective January1.
4. Performed delivery services for a customer and received $2,000 cash.
5. Completed a large delivery job for a customer on account for $7,500.
6. Paid $5,000 for employee salaries.
7. Performed delivery services for customers and received $55,000 cash.
8. Collected $2,500 in advance for delivery service to be performed later.
9. Collected $3,500 cash from a customer on account.
10. Purchased fuel for the truck, paying $1,800 with a company credit card (Credit accounts payable).
11. Performed delivery services on account, $4,750.
12. Paid office rent $1,200.
13. Paid $1,000 for accounts payable.
14. Paid cash dividends of $9,000.

Requirements:

Record each transaction in the journal. Key each transaction by its letter (Explanations are not required).

Answer 1

a	Cash A/c	Dr	30000
	Delivery Truck A/c	Dr	36000
	To Common Stock Capital A/c			66000
b	Purchases A/c	Dr	1500
	To Cash A/c			1500
c	Insurance A/c	Dr	2750
	To Cash A/c			2750
d	Cash A/c	Dr	2000
	To Sales A/c			2000
e	Accounts Recievable A/c	Dr	7500
	To Sales A/c			7500
f	Salaries A/c	Dr	5000
	To Cash A/c			5000
g	Cash A/c	Dr	55000
	To Sales A/c			55000
h	Advance Recieved A/c	Dr	2500
	To Accounts Recievable A/c			2500
i	Cash A/c	Dr	3500
	To Accounts Recievable A/c			3500
j	Fuel Expense A/c	Dr	1800
	To Accounts Payable			1800
k	Accounts Recievable A/c	Dr	4750
	To Sales A/c			4750
l	Rent A/c	Dr	1200
	To Cash A/c			1200
m	Accounts Payable A/c	Dr	1000
	To Cash			1000
n	Dividend A/c	Dr	9000
	To Cash			9000