1. Record each January transaction in the journal. Explanations are not required. 2. Post the transactions in the T-accounts. Don't forget to use the December 31, 2018, ending balances as appropriate. 3. Prepare an unadjusted trial balance as of January 31, 2019. 4. Prepare a worksheet as of January 31, 2019. 5. 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. Adjustment data: a. Office Supplies on hand, $300. b. Accrued Service Revenue, $3,600. c. Accrued Salaries Expense, $1,300. d. Prepaid Insurance for the month has expired. (On December 1, Milton paid $460 cash for a four-month insurance policy. The policy began December 1. On December 31 Milton recorded $115 as an expense for the expiration of this prepaid insurance for the month of December.) Depreciation was recorded on the truck for the month. (On December 1, Milton received a truck valued at $15,000 from Rupert Milton. On December 31, Milton recorded $130 as an expense for the month of December for depreciation on the truck using the straight-line method, a useful life of 5 years, and a salvage value of $7,200.) 6. Prepare an adjusted trial balance as of January 31, 2019. 7. Prepare Milton Delivery Service's income statement and statement of retained earnings for the month ended January 31, 2019, and the classified balance sheet on that date. On the income statement, list expenses in decreasing order by amountthat is, the largest expense first, the smallest expense last. 8. Calculate the following ratios as of January 31, 2019 for Milton Delivery Service: return on assets, debt ratio, and current ratio. Milton Delivery Service has completed closing entries and the accounting cycle for 2018. The classified balance sheet on December 31, 2018 follows: (Click the icon to view the December balance sheet.) The business is now ready to record January 2019 transactions. (Click the icon to view the transactions.) Read the requirements. Requirement 4. Prepare a worksheet as of January 31, 2019. The Unadjusted Trial Balance columns have been completed for you using the unadjusted trial balance you prepared in Requirement 3. Complete the worksheet one section at a time beginning with the Adjustments section. Enter the adjustments along with the adjustment letter references-(a), (b), (c), etc.into the columns as appropriate. In the following step, complete the Adjusted Trial Balance section of the worksheet. Lastly, complete the worksheet by preparing the Income Statement and Balance Sheet columns. (Click the icon to view the adjustment information.) Milton Delivery Service Worksheet January 31, 2019 Unadjusted Trial Balance Adjustments Account Names Debit Credit Debit Credit Milton Delivery Service has completed closing entries and the accounting cycle for 2018. The classified balance sheet on December 31, 2018 follows: (Click the icon to view the December balance sheet.) The business is now ready to record January 2019 transactions. (Click the icon to view the transactions.) Read the requirements. Milton Delivery Service Worksheet January 31, 2019 Unadjusted Trial Balance Adjustments Account Names Debit Credit Debit Credit Cash 27,940 4,000 Accounts Receivable Office Supplies Prepaid Insurance 700 345 15,000 130 Truck Acc. Dep.-Truck Accounts Payable Salaries Payable 400 Uneamed Revenue 2,200 40,000 Common Stock Milton Delivery Service has completed closing entries and the accounting cycle for 2018. The classified balance sheet on December 31, 2018 follows: (Click the icon to view the December balance sheet.) The business is now ready to record January 2019 transactions. (Click the icon to view the transactions.) Read the requirements. 400 Accounts Payable Salaries Payable Unearned Revenue 2,200 Common Stock 40,000 10,605 Retained Earnings Dividends 4,500 Service Revenue 3,550 Salaries Expense 2,800 Dep. Exp.Truck Insurance Expense Fuel Expense Rent Expense 300 1,300 Supplies Expense 56,885|| 56,885 Net income or loss Reference X More Info - Jan. 3 Collected $700 cash from customer on account. Milton Delivery Service Balance Sheet December 31, 2018 Assets 34,040 2,850 Jan. 5 Purchased office supplies on account, $500. Jan. 12 Performed delivery services for a customer and received $1,000 cash. Paid employee salary including the amount owed on December 31, $3,800. (The total cash paid of $3,800 includes the amount owed on Jan. 15 December 31.) Jan. 18 Performed delivery services on account, $1,850. Jan. 20 Paid $100 on account. Jan. 24 Purchased fuel for the truck, paying $300 cash. Jan. 27 Completed the remaining work due for Uneamed Revenue. Jan. 28 Paid office rent, $1,300, for the month of January Jan. 30 Collected $2,200 in advance for delivery service to be performed later. Jan. 31 Cash dividends of $4,500 were paid to stockholders. $. Current Assets: Cash Accounts Receivable Office Supplies Prepaid Insurance Total Current Assets Plant Assets: Truck 200 345 $ 37.435 15,000 (130) Less: Accumulated DepreciationTruck Total Plant Assets 14,870 Print Done $ 52,305 Total Assets Liabilities Current Liabilities: X Requirements - a. 1. Record each January transaction in the journal. Explanations are not required. 2. Post the transactions in the T-accounts. Don't forget to use the December 31, 2018, ending balances as appropriate. 3. Prepare an unadjusted trial balance as of January 31, 2019. 4. Prepare a worksheet as of January 31, 2019. 5. 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. Adjustment data: Office Supplies on hand, $300. b. Accrued Service Revenue, $3,600. Accrued Salaries Expense, $1,300. d. Prepaid Insurance for the month has expired. (On December 1, Milton paid $460 cash for a four-month insurance policy. The policy began December 1. On December 31 Milton recorded $115 as an expense for the expiration of this prepaid insurance for the month of December.) Depreciation was recorded on the truck for the month. (On December 1, Milton received a truck valued at $15,000 from Rupert Milton. On December 31, Milton recorded $130 as an expense for the month of December for depreciation on the truck using the straight-line method, a useful life of 5 years, and a salvage value of $7,200.) 6. Prepare an adjusted trial balance as of January 31, 2019. 7. Prepare Milton Delivery Service's income statement and statement of retained earnings for the month ended January 31, 2019, and the classified balance C. e. Total Plant Assets 14,870 $ 52,305 Total Assets Liabilities Current Liabilities: : Salaries Payable $ 1,000 700 Unearned Revenue Total Liabilities 1,700 Stockholders' Equity Common Stock 40,000 10,605 Retained Earnings Total Stockholders' Equity 50,605 $ Total Liabilities and Stockholders' Equity 52,305 1. Record each January transaction in the journal. Explanations are not required. 2. Post the transactions in the T-accounts. Don't forget to use the December 31, 2018, ending balances as appropriate. 3. Prepare an unadjusted trial balance as of January 31, 2019. 4. Prepare a worksheet as of January 31, 2019. 5. 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. Adjustment data: a. Office Supplies on hand, $300. b. Accrued Service Revenue, $3,600. c. Accrued Salaries Expense, $1,300. d. Prepaid Insurance for the month has expired. (On December 1, Milton paid $460 cash for a four-month insurance policy. The policy began December 1. On December 31 Milton recorded $115 as an expense for the expiration of this prepaid insurance for the month of December.) Depreciation was recorded on the truck for the month. (On December 1, Milton received a truck valued at $15,000 from Rupert Milton. On December 31, Milton recorded $130 as an expense for the month of December for depreciation on the truck using the straight-line method, a useful life of 5 years, and a salvage value of $7,200.) 6. Prepare an adjusted trial balance as of January 31, 2019. 7. Prepare Milton Delivery Service's income statement and statement of retained earnings for the month ended January 31, 2019, and the classified balance sheet on that date. On the income statement, list expenses in decreasing order by amountthat is, the largest expense first, the smallest expense last. 8. Calculate the following ratios as of January 31, 2019 for Milton Delivery Service: return on assets, debt ratio, and current ratio. Milton Delivery Service has completed closing entries and the accounting cycle for 2018. The classified balance sheet on December 31, 2018 follows: (Click the icon to view the December balance sheet.) The business is now ready to record January 2019 transactions. (Click the icon to view the transactions.) Read the requirements. Requirement 4. Prepare a worksheet as of January 31, 2019. The Unadjusted Trial Balance columns have been completed for you using the unadjusted trial balance you prepared in Requirement 3. Complete the worksheet one section at a time beginning with the Adjustments section. Enter the adjustments along with the adjustment letter references-(a), (b), (c), etc.into the columns as appropriate. In the following step, complete the Adjusted Trial Balance section of the worksheet. Lastly, complete the worksheet by preparing the Income Statement and Balance Sheet columns. (Click the icon to view the adjustment information.) Milton Delivery Service Worksheet January 31, 2019 Unadjusted Trial Balance Adjustments Account Names Debit Credit Debit Credit Milton Delivery Service has completed closing entries and the accounting cycle for 2018. The classified balance sheet on December 31, 2018 follows: (Click the icon to view the December balance sheet.) The business is now ready to record January 2019 transactions. (Click the icon to view the transactions.) Read the requirements. Milton Delivery Service Worksheet January 31, 2019 Unadjusted Trial Balance Adjustments Account Names Debit Credit Debit Credit Cash 27,940 4,000 Accounts Receivable Office Supplies Prepaid Insurance 700 345 15,000 130 Truck Acc. Dep.-Truck Accounts Payable Salaries Payable 400 Uneamed Revenue 2,200 40,000 Common Stock Milton Delivery Service has completed closing entries and the accounting cycle for 2018. The classified balance sheet on December 31, 2018 follows: (Click the icon to view the December balance sheet.) The business is now ready to record January 2019 transactions. (Click the icon to view the transactions.) Read the requirements. 400 Accounts Payable Salaries Payable Unearned Revenue 2,200 Common Stock 40,000 10,605 Retained Earnings Dividends 4,500 Service Revenue 3,550 Salaries Expense 2,800 Dep. Exp.Truck Insurance Expense Fuel Expense Rent Expense 300 1,300 Supplies Expense 56,885|| 56,885 Net income or loss Reference X More Info - Jan. 3 Collected $700 cash from customer on account. Milton Delivery Service Balance Sheet December 31, 2018 Assets 34,040 2,850 Jan. 5 Purchased office supplies on account, $500. Jan. 12 Performed delivery services for a customer and received $1,000 cash. Paid employee salary including the amount owed on December 31, $3,800. (The total cash paid of $3,800 includes the amount owed on Jan. 15 December 31.) Jan. 18 Performed delivery services on account, $1,850. Jan. 20 Paid $100 on account. Jan. 24 Purchased fuel for the truck, paying $300 cash. Jan. 27 Completed the remaining work due for Uneamed Revenue. Jan. 28 Paid office rent, $1,300, for the month of January Jan. 30 Collected $2,200 in advance for delivery service to be performed later. Jan. 31 Cash dividends of $4,500 were paid to stockholders. $. Current Assets: Cash Accounts Receivable Office Supplies Prepaid Insurance Total Current Assets Plant Assets: Truck 200 345 $ 37.435 15,000 (130) Less: Accumulated DepreciationTruck Total Plant Assets 14,870 Print Done $ 52,305 Total Assets Liabilities Current Liabilities: X Requirements - a. 1. Record each January transaction in the journal. Explanations are not required. 2. Post the transactions in the T-accounts. Don't forget to use the December 31, 2018, ending balances as appropriate. 3. Prepare an unadjusted trial balance as of January 31, 2019. 4. Prepare a worksheet as of January 31, 2019. 5. 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. Adjustment data: Office Supplies on hand, $300. b. Accrued Service Revenue, $3,600. Accrued Salaries Expense, $1,300. d. Prepaid Insurance for the month has expired. (On December 1, Milton paid $460 cash for a four-month insurance policy. The policy began December 1. On December 31 Milton recorded $115 as an expense for the expiration of this prepaid insurance for the month of December.) Depreciation was recorded on the truck for the month. (On December 1, Milton received a truck valued at $15,000 from Rupert Milton. On December 31, Milton recorded $130 as an expense for the month of December for depreciation on the truck using the straight-line method, a useful life of 5 years, and a salvage value of $7,200.) 6. Prepare an adjusted trial balance as of January 31, 2019. 7. Prepare Milton Delivery Service's income statement and statement of retained earnings for the month ended January 31, 2019, and the classified balance C. e. Total Plant Assets 14,870 $ 52,305 Total Assets Liabilities Current Liabilities: : Salaries Payable $ 1,000 700 Unearned Revenue Total Liabilities 1,700 Stockholders' Equity Common Stock 40,000 10,605 Retained Earnings Total Stockholders' Equity 50,605 $ Total Liabilities and Stockholders' Equity 52,305