1. Mark Welby, a retired medical practitioner, started a retirement business on July 1, 2020.This business, known as Doc's Delivery Service Inc., operates as a courier for important medical documents, reports, and packages.The following transactions occurred during the first month of business operations: 35 marks July 1 Mark received 100 common shares in Doc's Delivery Service in exchange for cash and office equipment in the following amounts: Cash $43,315 Office equipment $12,621 July 2 The business rented office space from a commercial landlord.The landlord required both the first and last month's rent.Mark paid him with a company cheque.The amount of the monthly rent is as follows: Office rent per month $1,010 July 2 The business spent cash on a 1-year automotive insurance policy, paying the following amount: Automotive insurance premium $4,846 July 4 Doc's Delivery Service received cash from DT Bank in exchange for a note payable.The amount of the loan is as follows: Amount of loan $56,400 July 6 The business purchased office supplies on account in the following amount: Office supplies $3,130 July 8 The business purchased automotive equipment for cash in the following amount: Delivery van $23,674 July 12 Doc's Delivery Service received an advance payment from a customer called Med-Tech Consultants, for delivery services to be provided in the future: Amount of advance payment $5,177 July 15 The business provided delivery services to customers, and immediately collected cash: Cash collected from customers $9,668 July 20 The business paid for the office supplies purchased on July 6. July 22 The business provided courier services on account to one of its customers: Amount of services provided $5,516 July 24 The business paid for fuel and oil for the delivery truck in the following amount: Fuel and oil $171 July 29 The business wrote cheques to pay the wages of drivers during the month of July: Total drivers' wages $2,354 Doc's Delivery Service adopted the following chart of accounts for bookkeeping purposes: Account Number Account Description 101 Cash 110 Accounts receivable 115 Office supplies 120 Prepaid rent 125 Prepaid insurance 150 Office equipment 155 Accumulated depreciation, office equipment 160 Delivery van 165 Accumulated depreciation, delivery van 210 Accounts payable 220 Salaries and wages payable 225 Interest payable 230 Unearned delivery service revenue 250 Notes payable 310 Common shares 340 Retained earnings 410 Delivery service revenue 510 Automotive fuel and oil expense 530 Depreciation expense 540 Insurance expense 545 Interest expense 550 Office supplies expense 570 Rent expense 575 Salaries expense - office 580 Telephone expense 590 Wages expense - delivery 999 Income summary Required: a) Using the chart of accounts provided above, prepare journal entries for the month of July 2020 for Doc's Delivery Service. You are not required to provide an explanation for each journal entry. (13 marks) b) Post each of the journal entries you prepared in Requirement 1 to the general ledger for Doc's Delivery Service Inc. (13 marks) c) Prepare an unadjusted trial balance for Doc's Delivery Service as of July 31, 2020 (9 marks). Note: Optional templates are provided in a separate document for the purpose of completing Questions 1 and 2 of this assignment.

2. Note: Question 2 is a continuation of Question 1 for Doc's Delivery Service Inc. 74 marks Doc's Delivery Service is in the process of preparing its financial statements at the end of its first month of operations.The following information concerns the adjusting entries to be recorded as of July 31, 2020: i) An inventory count indicated that there were unused office supplies in the following amount on July 31, 2020: Unused office supplies $732 ii) Depreciation expense was estimated to be the following for the office equipment and delivery van for the month of July 2020: Office equipment $155 Delivery van $709 iii) The insurance policy purchased by the business on July 2, 2020 is in effect for the 1-year period ending June 30, 2021. iv) A bill for cellular phone services during July 2020 arrived in the mail on August 10, 2020. Amount of phone bill $337 v) Office salaries and delivery wages in the following amounts were earned by employees during the month of July 2020.They are unpaid, and are not currently recorded in the accounting records. Office salaries owing $524 Delivery wages owing $345 vi) Billing records for Doc's Delivery Service indicate that as of July 31, 2020, 1/4 of the amount received from Med-Tech on July 12, 2020 remains unearned. vii) Interest accrues on the note payable from DT Bank at a rate of 8% annually.The first month of interest on the loan is paid to DT bank on August 4, 2020. Required: a) Prepare the adjusting journal entries for Doc's Delivery Service Inc. as at July 31, 2020.You are not required to provide an explanation for each journal entry. (9 marks) b) Post each adjusting journal entry to the general ledger accounts used for Question 1 of this assignment. (8.5 marks) c) Prepare an adjusted trial balance for Doc's Delivery Service Inc. as at July 31, 2020. (14.5 marks) d) Prepare the following financial statements for Doc's Delivery Service Inc., as at, or for the month ended July 31, 2020: Income Statement (6 marks) Statement of Retained Earnings (2.5 marks) Classified Balance Sheet (11.5 marks) Assume the entire balance owing on the note payable will be paid on June 20, 2025. Hint: Use the format followed inLO 4, 3.1 Practice, and LO 5, 2.1 Practice to prepare the Statement of Retained Earnings and the Balance Sheet. e) Prepare the closing journal entries for Doc's Delivery Service, and post them to the general ledger accounts used for Question 1 of this assignment. You are not required to provide an explanation for each journal entry. (12 marks) f) Prepare a post-closing trial balance at July 31, 2020. (10 marks)