FINANCIAL ACCOUNTING SPRING 2020 FINAL PROJECT Comprehensive Accounting Cycle Murphy Delivery Service completed the following transactions during December 2018: Dec. 1 Murphy Delivery Service began operations by receiving $13,000 cash and a truck with a fair value of $9,000 from Russ Murphy. The business issued Murphy shares of common stock in exchange for this contribution. 1 Paid $600 cash for a six-month insurance policy. The policy begins December 1. 4 Paid $750 cash for office supplies. 12 Performed delivery services for a customer and received $2,200 cash. 15 Completed a large delivery job, billed the customer, $3,300, and received a promise to collect the $3,300 within one week. 18 Paid employee salary, $800. 20 Received $7,000 cash for performing delivery services. 22 Collected $2,200 in advance for delivery service to be performed later. 25 Collected $3,300 cash from customer on account. 27 Purchased fuel for the truck, paying $150 on account. (Credit Accounts Payable) 28 Performed delivery services on account, $1,400. 29 Paid office rent, $1,400, for the month of December. 30 Paid $150 on account. 31 Cash dividends of $2,500 were paid to stockholders. FINANCIAL ACCOUNTING SPRING 2020 Chart of accounts 1. Cash 3. Office Supplies 5. Truck 7. Accounts Payable 9. Unearned Revenue 11. Retained Earnings 13. Income Summary 15. Salaries Expense 17. Insurance Expense 19. Rent Expense 2. Accounts Receivable 4. Prepaid Insurance 6. Accumulated Depreciation-Truck 8. Salaries Payable 10. Common Stock 12. Dividends 14. Service Revenue 16. Depreciation Expense-Truck 18. Fuel Expense 20. Supplies Expense Adjustment data: a. Accrued Salaries Expense, $800. b. Depreciation was recorded on the truck using the straight-line method. Assume a useful life of five years and a salvage value of $3,000. c. Prepaid Insurance for the month has expired. d. Office Supplies on hand, $450. e. Unearned Revenue earned during the month, $700. f. Accrued Service Revenue, $450. Requirements: Complete the following on the attached work papers 1. Prepare the journal entries. 2. Post to Ledger accounts (T-accounts) 3. Prepare an unadjusted trial balance. 4. Prepare the adjusting entries and post to the T-accounts. 5. Prepare an adjusted trial balance. 6. Prepare the income statement, the statement of owner's equity, and a classified balance sheet. Use proper formatting techniques including headings, dollar signs, and underlining. 7. Prepare the closing entries and post to the T-accounts. 8. Prepare a post-closing trial balance.