Murphy Delivery Services began operation on December 1, 2018 and completed the transactions listed below during the first month of operations.

12/01/2018

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.

12/01/2018

Paid $600 cash for a six-month insurance policy. The policy begins December 1.

12/04/2018

Paid $750 cash for office supplies.

12/12/2018

Performed delivery services for a customer and received $2,200 cash.

12/15/2018

Completed a large delivery job, billed the customer $3,300, and received a promise to collect this amount within one week.

12/18/2018

Paid employee salary of $800.

12/20/2018

Received $7,000 cash for performing delivery services.

12/22/2018

Collected $2,200 in advance for delivery services to be performed later.

12/25/2018

Collected $3,300 cash from customer on account.

12/27/2018

Purchased fuel for the truck, paying $150 on account (credit Accounts Payable).

12/28/2018

Performed delivery services on account, $1,400.

12/29/2018

Paid office rent, $1,400, for the month of December.

12/30/2018

Paid $150 on account.

12/31/2018

Murphy withdrew cash of $2,500.

12/31/2018

(Adjustment a) Accrued salary expense, $800.

12/31/2018

(Adjustment b) Record Depreciation on the truck using the straight-line method. Assume a useful life of 5 years and a salvage value of $3,000.

12/31/2018

(Adjustment c) Prepaid insurance for the month has expired.

12/31/2018

(Adjustment d) Office Supplies on hand, $450.

12/31/2018

(Adjustment e) Unearned Revenue earned during the month, $700.

12/31/2018

(Adjustment f) Accrued Service Revenue, $450.

12/31/2018

(Closing Entry 1) Close all revenue account.

12/31/2018

(Closing Entry 2) Close all expense accounts (compound entry).

12/31/2018

(Closing Entry 3) Close the Income Summary account.

12/31/2018

(Closing Entry 4) Close the withdrawals account.