Question
Gulf Delivery Service, Inc. completed the following transactions during January, 2018: 1Shareholders invested in the business $25,000 cash and a delivery truck valued at $35,000
Gulf Delivery Service, Inc. completed the following transactions during January, 2018:
1Shareholders invested in the business $25,000 cash and a delivery truck valued at $35,000 in exchange for common stock.
2.Purchased supplies for $1,000 cash.
3.Paid $2,400 for a one-year insurance policy, effective January1.
3.Performed delivery services for a customer and received $2,500 cash.
4.Completed a large delivery job for a customer on account for $8,000.
5.Paid $6,000 for employee salaries.
6.Performed delivery services for customers and received $55,000 cash.
7.Collected $4,000 in advance for delivery service to be performed later.
8.Collected $3,000 cash from a customer on account.
9.Purchased fuel for the truck , paying $1,500 with a company credit card (Credit accounts payable).
10.Performed delivery services on account, $4,500.
11.Paid office rent $2,500.
12.Paid $500 for accounts payable.
13.Paid cash dividends of $10,000.
a.
Record each transaction in the journal. Key each transaction by its letter (Explanations are not required).
b.Post the transactions that you recorded in requirement 1 to the ledger accounts using T-accounts. The ledger for Gulf Delivery Service contains the following accounts:
Cash Service revenue
Accounts receivable Salaries expense
Supplies Depreciation expense
Prepaid insurance Insurance expense
Delivery truck Fuel expense
Accumulated depreciation rent expense
Accounts payable supplies expense
Salaries payable
Unearned service revenue
Common stock
Retained earnings
Dividends
Income summary
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started