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Kays Delivery Service begun operation in 2020 and the owner of the company Karen Taylor has reques te d the assistance of your group in

Kays Delivery Service begun operation in 2020 and the owner of the company Karen Taylor has requested the assistance of your group in the preparation of the companys accounts. The company presented the following chart of accounts for use in the recording of its transactions:

Cash

Service revenue

Accounts receivable

Salary expense

Supplies

Depreciation expense

Prepaid Insurance

Insurance expense

Delivery truck

Fuel expense

Accumulated depreciation

Rent expense

Accounts payable

Supplies expense

Salary payable

Income summary

Unearned service revenue

Kays, Capital

Kays, Drawing

During the period January to December 2020 the company completed the following transactions:

A. Kays Delivery Service began operations by receiving $180,000 cash and a truck valued at $250,000. The business gave Kay capital to acquire these assets.

B. Paid $19,000 cash for supplies.

C. Prepaid insurance, $28,000.

D. Performed delivery services for a customer and received $5,500 cash.

E. Completed a large delivery job, billed the customer $35,500, and received a promise to collect the $35,500 within three (3) months.

F. Paid employees salary, $65,700.

G. Received $15,000 cash for performing delivery services.

H. Collected $12,000 in advance for delivery service to be performed later.

I. Collected $35,500 cash from a customer on account.

J. Purchased fuel for the truck, paying $29,800 with a company credit card. (Credit Accounts payable)

K. Performed delivery services on account, $4,500.

L. Paid office rent, $85,000 for the year.

M. Paid $20,800 on account relating to fuel purchased.

N. Owner withdrew cash of $15,300.

Requirements:

1. Record each transaction in the journal and key each transaction by its letter. Narrations are not required.

2. Post the transaction your recorded in requirement 1 in the T accounts as per the companys accounts as provided.

3. Prepare the unadjusted trail balance for the year ended December 31, 2020,based on the info already presented.

4. The following additional information relates to the companys 2020 financial affairs and was provided in the first week of 2021 and are to be record sameas adjusting entries:( Key each transaction by its letter and narrations are not required):

O. Accrued salary expense, $19,500.

P. Depreciation expense, $6,500.

Q. Prepaid insurance expired, $24,000.

R. Supplies on hand, $2,500.

S. Unearned service revenue earned during 2020, $7,000.

5. Use the transactions in requirement 4 to update the affected T accounts.

6. Prepare the companys adjusted trial balance, income statement, statement of owners equity and classified balance sheet for 2020.

7. Journalize and post the closing entries to their respective T accounts.

8. Prepare the companys post-closing trial balance for 2020.

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