Mighty Delivery Service completed the following transactions during December$$:$2024$

Part $1$

Requirement $1.$ Record each transaction in the journal. Explanations are not required. $($Record debits$$ first, then credits. Exclude explanations from journal$$ entries.$)$

Dec$1$: Mighty Delivery Service began operations by receiving $$2,000$ cash and a truck with a fair value of $$18,000$ from Rico Mighty. The business gave Mighty capital in exchange for this contribution.

Date

Accounts

Debit

Credit

Dec. $11.$

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

$$

Cash

Mighty, Withdrawals

Accounts Receivable

Income Summary

Office Supplies

Service Revenue

Prepaid Insurance

Salaries Expense

Truck

Depreciation Expense$$Truck

Accumulated Depreciation$$Truck

Insurance Expense

Accounts Payable

Fuel Expense

Salaries Payable

Rent Expense

Unearned Revenue

Supplies Expense

Mighty, 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$$ Expense, $$1,300.$

b$.$

Depreciation was recorded on the truck using the$$ straight$-$line method. Assume a useful life of $5$ years and a salvage value of $$9,000.$

c$.$

Prepaid Insurance for the month has expired.

d$.$

Office Supplies on$$ hand, $$150.$

e$.$

Unearned Revenue earned during the$$ month, $$500.$

f$.$

Accrued Service$$ Revenue, $$650.$

$6.$

Prepare an adjusted trial balance as of December $31,2024.$

$7.$

Prepare Mighty 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$$ statement, list expenses in decreasing order by amount$\_\_$that $$is$,$ the largest expense$$ first, the smallest expense last.

$8.$

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

$9.$

Prepare a$$ post$-$closing trial balance as of December $31,2024.$ Dec. $1$ Mighty Delivery Service began operations by receiving $$2,000$ cash and a truck with a fair value of $$18,000$ from Rico Mighty. The business issued Mighty 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 $$600$ cash for office supplies.

Dec. $12$ Performed delivery services for a customer and received $$1,600$ cash.

Dec. $15$ Completed a large delivery job, billed the customer, $$2,700,$ and received a promise to collect the $$2,700$ within one week.

Dec. $18$ Paid employee salary, $$1,300.$

Dec. $20$ Received $$10,000$ cash for performing delivery services.

Dec. $22$ Collected $$1,900$ in advance for delivery service to be performed later.

Dec. $25$ Collected $$2,700$ cash from customer on account.

Dec. $27$ Purchased fuel for the truck, paying $$250$ on account. $($Credit Accounts Payable$)$

Dec. $28$ Performed delivery services on account, $$1,300.$

Dec. $29$ Paid office rent, $$1,200,$ for the month of December.

Dec. $30$ Paid $$250$ on account.

Dec. $31$ Mighty withdrew cash of $$2,900.$