The following transactions occurred for Murphy Delivery Service during December 2020: Dec. 1 Murphy Delivery Service...
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The following transactions occurred for Murphy Delivery Service during December 2020: Dec. 1 Murphy Delivery Service began operations by receiving $27,000 cash and a truck with a fair value of $16,320 from Russ Murphy. The business issued Murphy shares of common stock in exchange for this contribution. 1 Paid $3,840 cash for a one-year insurance policy. The policy begins on December 1. 4 Paid $1200 cash for office supplies. 12 Performed delivery services for a customer and received $4,500 cash. 15 Completed a large delivery job, billed the customer, $10,800, and received a promise to collect the $10,800 within one week 18 Paid employee salary, $3,900. 20 Received $8,000 cash for performing delivery services. 22 Collected S5,200 in advance for delivery service to be performed later. 25 Collected $10,800 cash from a customer on account. 27 Purchased fuel for the truck, paying $750 on the account. (Credit Accounts Payable) 28 Performed delivery services on account, $5,750. 29 Paid office rent, $2,550, for the month of December. 30 Paid $460 on the account. 31 Cash dividends of $3,450 were paid to stockholders. Assume that Murphy Delivery Service started its operations in December 2020 and the beginning balance in all accounts is zero. 4. 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. (6 points-1 point each) a. Depreciation was recorded on the truck using the straight-line method. Assume a useful life of eight years and a residual value of $2,600. b. Office Supplies on hand, $780. c. Accrued Service Revenue, $2,750. d. Accrued Salaries Expense, $1,800. e. Prepaid Insurance for the month has expired. f. Unearned Revenue earned during the month, $3,250. 5. Prepare Murphy Delivery Service's income statement and statement of retained earnings for the month ended December 31, 2020, and the classified balance sheet on that date. (12 points) 6. Journalize the closing entries, and post to the T-accounts (using the accounts we covered in class). (6 points) 7. Prepare a post-closing trial balance as of December 31, 2020. (5 points) The following transactions occurred for Murphy Delivery Service during December 2020: Dec. 1 Murphy Delivery Service began operations by receiving $27,000 cash and a truck with a fair value of $16,320 from Russ Murphy. The business issued Murphy shares of common stock in exchange for this contribution. 1 Paid $3,840 cash for a one-year insurance policy. The policy begins on December 1. 4 Paid $1200 cash for office supplies. 12 Performed delivery services for a customer and received $4,500 cash. 15 Completed a large delivery job, billed the customer, $10,800, and received a promise to collect the $10,800 within one week 18 Paid employee salary, $3,900. 20 Received $8,000 cash for performing delivery services. 22 Collected S5,200 in advance for delivery service to be performed later. 25 Collected $10,800 cash from a customer on account. 27 Purchased fuel for the truck, paying $750 on the account. (Credit Accounts Payable) 28 Performed delivery services on account, $5,750. 29 Paid office rent, $2,550, for the month of December. 30 Paid $460 on the account. 31 Cash dividends of $3,450 were paid to stockholders. Assume that Murphy Delivery Service started its operations in December 2020 and the beginning balance in all accounts is zero. 4. 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. (6 points-1 point each) a. Depreciation was recorded on the truck using the straight-line method. Assume a useful life of eight years and a residual value of $2,600. b. Office Supplies on hand, $780. c. Accrued Service Revenue, $2,750. d. Accrued Salaries Expense, $1,800. e. Prepaid Insurance for the month has expired. f. Unearned Revenue earned during the month, $3,250. 5. Prepare Murphy Delivery Service's income statement and statement of retained earnings for the month ended December 31, 2020, and the classified balance sheet on that date. (12 points) 6. Journalize the closing entries, and post to the T-accounts (using the accounts we covered in class). (6 points) 7. Prepare a post-closing trial balance as of December 31, 2020. (5 points)
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solution Journal entries in the books of Murphy delivery service during the december 2020 As on 1122020 Cash Ac Dr 27000 Truck Ac Dr 16320 To Share capital Ac 43320 Being capital contributed into the ... View the full answer
Related Book For
College Accounting A Practical Approach
ISBN: 978-0132564441
11th Canadian Edition
Authors: Jeffrey Slater, Brian Zwicker
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