Munroe Delivery Service has completed closing entries and the accounting cycle for 2018. The classified balance sheet on December 31, 2018 follows: (Click the icon to view the December balance sheet.) The business is now ready to record January 2019 transactions i (Click the icon to view the transactions.) Read the requirements Requirement 1. Record each January transaction in the journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.) Munroe Delivery Service Balance Sheet December 31, 2018 Assets Current Assets $ Cash Accounts Receivable Office Supplies 20,970 2,450 200 1,540 Prepaid Insurance Total Current Assets Plant Assets: 25,160 Truck 18,000 (180) Less: Accumulated DepreciationTruck Total Plant Assets 17,820 $ Total Assets 42,980 Liabilities Current Liab Salaries Payable $ 1,400 700 Unearned Revenue Total Liabilities 2,100 Stockholders' Equity Common Stock 30,000 10,880 Retained Earnings Total Stockholders' Equity 40,880 $ 42,980 Total Liabilities and Stockholders' Equity f Requirements a. 1. Record each January transaction in the journal. Explanations are not required. 2. Post the transactions in the T-accounts. Don't forget to use the December 31, 2018, ending balances as appropriate. 3. Prepare an unadjusted trial balance as of January 31, 2019. 4. Prepare a worksheet as of January 31, 2019. 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: Office Supplies on hand, $180. b. Accrued Service Revenue, $3,800. C. Accrued Salaries Expense, $1,600. d. Prepaid Insurance for the month has expired. (On December 1, Munroe paid $1,680 cash for a twelve-month insurance policy. The policy began December 1. On December 31 Munroe recorded $140 as an expense for the expiration of this prepaid insurance for the month of December.) e. Depreciation was recorded on the truck for the month. (On December 1, Munroe received a truck valued at $18,000 from Richard Munroe. On December 31, Munroe recorded $180 as an expense for the month of December for depreciation on the truck using the straight-line method, a useful life of 5 years, and a salvage value of $7,200.) 6. Prepare an adjusted trial balance as of January 31, 2019. 7. Prepare Munroe Delivery Service's income statement and statement of retained earnings for the month ended January 31, 2019, 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. Calculate the following ratios as of January 31, 2019 for Munroe Delivery Service: return on assets, debt ratio, and current ratio. i More Info X Jan. 3 Collected $300 cash from customer on account. 5 Purchased office supplies on account, $600. 12 Performed delivery services for a customer and received $1,800 cash. 15 Paid employee salary including the amount owed on December 31, $2,000. (The total cash paid of $2,000 includes the amount owed on December 31.) 18 Performed delivery services on account, $1,150. 20 Paid $550 on account. 24 Purchased fuel for the truck, paying $500 cash. 27 Completed the remaining work due for Unearned Revenue. 28 Paid office rent, $1,600, for the month of January 30 Collected $3,400 in advance for delivery service to be performed later. 31 Cash dividends of $3,000 were paid to stockholders