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Dec. 1 Munroe Delivery Service began operations by receiving $14,000 cash and a truck with a fair value of $14,000 from Richard Munroe. The business

Dec. 1

Munroe Delivery Service began operations by receiving $14,000 cash and a truck with a fair value of $14,000 from Richard Munroe. The business issued Munroe capital in exchange for this contribution.

Dec. 1

Paid $900 cash for a six-month insurance policy. The policy begins December 1.

Dec. 4

Paid $800 cash for office supplies.

Dec. 12

Performed delivery services for a customer and received $1,700 cash.

Dec. 15

Completed a large delivery job, billed the customer, $3,000, and received a promise to collect the $3,000 within one week.

Dec. 18

Paid employee salary, $1,600.

Dec. 20

Received $12,000 cash for performing delivery services.

Dec. 22

Collected $1,100 in advance for delivery service to be performed later.

Dec. 25

Collected $3,000 cash from customer on account.

Dec. 27

Purchased fuel for the truck, paying $200 on account. (Credit Accounts Payable)

Dec. 28

Performed delivery services on account, $1,100.

Dec. 29

Paid office rent, $1,900, for the month of December.

Dec. 30

Paid $200 on account.

Dec. 31

Munroe withdrew cash of $2,800

Record each transaction in the journal using the following chart of accounts. Explanations are not required.

Cash

Munroe, Withdrawals

Accounts Receivable

Income Summary

Office Supplies

Service Revenue

Prepaid Insurance

Salaries Expense

Truck

Depreciation ExpenseTruck

Accumulated DepreciationTruck

Insurance Expense

Accounts Payable

Fuel Expense

Salaries Payable

Rent Expense

Unearned Revenue

Supplies Expense

Munroe, Capital

2.

Post the transactions in the T-accounts.

3.

Prepare an unadjusted trial balance as of

December

31,

2024.

4.

Prepare a worksheet as of

December

31,

2024.

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.

Accrued Salaries Expense,

$1,600.

b.

Depreciation was recorded on the truck using the straight-line method. Assume a useful life of

five

years and a salvage value of

$5,000.

c.

Prepaid Insurance for the month has expired.

d.

Office Supplies on hand,

$250.

e.

Unearned Revenue earned during the month,

$300.

f.

Accrued Service Revenue,

$950.

6.

Prepare an adjusted trial balance as of

December

31,

2024.

7.

Prepare

Munroe

Delivery Service's income statement and statement of owner's equity for the month ended

December

31,

2024,

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.

Journalize the closing entries and post to the T-accounts.

9.

Prepare a post-closing trial balance as of

December

31,

2024.

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