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 capital 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: Murphy withdrew cash of $2,500

Requirements 1. Record each transaction in the journal using the following chart of accounts.

Explanations are not required.

Cash Accounts Receivable Office Supplies Prepaid Insurance Truck Accumulated DepreciationTruck Accounts Payable Salaries Payable Unearned Revenue Murphy, Capital

Murphy, Withdrawals Income Summary Service Revenue Salaries Expense Depreciation ExpenseTruck Insurance Expense

Fuel Expense Rent Expense Supplies Expense

2. Post the transactions in theT-accounts. 3. Prepare an unadjusted trial balance as of December 31, 2018. 4. Prepare a worksheet as of December 31, 2018 (optional).

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.

CHAPTER 4

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.

6. Prepare an adjusted trial balance as of December 31, 2018.

7. Prepare Murphy Delivery Service's income statement and statement of owner's equity for the month ended December 31, 2018, 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. Journalize the closing entries ,and post to the T-accounts. 9. Prepare a post-closing trial balance as of December 31, 2018.

(Miller-Nobles 240-241)