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