NEED ANSWERS FOR QUESTION 5,6,7
PART1: The following transactions occurred for Murphy Delivery Service during December 2020: Dec. 1 Murphy Delivery Service began operations by receiving $22,000 cash and a truck with a fair value of $15,000 from Russ Murphy. The business issued Murphy shares of common stock in exchange for this contribution. 1 Paid $4,080 cash for a one-year insurance policy. The policy begins on December 1. 4 Paid $1,400 cash for office supplies. 12 Performed delivery services for a customer and received $4,800 cash. 15 Completed a large delivery job, billed the customer, $11,400, and received a promise to collect the $11,400 within one week 18 Paid employee salary, $3,600. 20 Received $7,850 cash for performing delivery services. 22 Collected $6,400 in advance for delivery service to be performed later. 25 Collected $11,400 cash from a customer on account. 27 Purchased fuel for the truck, paying $750 on the account. (Credit Accounts Payable) 28 Performed delivery services on account, $5,750. 29 Paid office rent, $2,550, for the month of December. 30 Paid $460 on the account. 31 Cash dividends of $3,450 were paid to stockholders. Assume that Murphy Delivery Service started its operations in December 2020 and the beginning balance in all accounts is zero. 1. Record each transaction in the journal using the following chart of accounts. Explanations are not required. (14 points-1 point each) 2. Post the transactions in the T-accounts. (6 points) 3. Prepare an unadjusted trial balance as of December 31,2020 . (6 points) 4. 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. (6 points-1 point each) a. Depreciation was recorded on the truck using the straight-line method. Assume a useful life of seven years and a residual value of $2,400. b. Office Supplies on hand, $890. c. Accrued Service Revenue, $3,250. d. Accrued Salaries Expense, $1,500. e. Prepaid Insurance for the month has expired. f. Unearned Revenue earned during the month, $4,350. 5. Prepare Murphy Delivery Service's income statement and statement of retained earnings for the month ended December 31,2020, and the classified balance sheet on that date. (12 points) 6. Journalize the closing entries, and post to the T-accounts (using the accounts we covered in class). (6 points) 7. Prepare a post-closing trial balance as of December 31,2020 . (5 points) PART1: The following transactions occurred for Murphy Delivery Service during December 2020: Dec. 1 Murphy Delivery Service began operations by receiving $22,000 cash and a truck with a fair value of $15,000 from Russ Murphy. The business issued Murphy shares of common stock in exchange for this contribution. 1 Paid $4,080 cash for a one-year insurance policy. The policy begins on December 1. 4 Paid $1,400 cash for office supplies. 12 Performed delivery services for a customer and received $4,800 cash. 15 Completed a large delivery job, billed the customer, $11,400, and received a promise to collect the $11,400 within one week 18 Paid employee salary, $3,600. 20 Received $7,850 cash for performing delivery services. 22 Collected $6,400 in advance for delivery service to be performed later. 25 Collected $11,400 cash from a customer on account. 27 Purchased fuel for the truck, paying $750 on the account. (Credit Accounts Payable) 28 Performed delivery services on account, $5,750. 29 Paid office rent, $2,550, for the month of December. 30 Paid $460 on the account. 31 Cash dividends of $3,450 were paid to stockholders. Assume that Murphy Delivery Service started its operations in December 2020 and the beginning balance in all accounts is zero. 1. Record each transaction in the journal using the following chart of accounts. Explanations are not required. (14 points-1 point each) 2. Post the transactions in the T-accounts. (6 points) 3. Prepare an unadjusted trial balance as of December 31,2020 . (6 points) 4. 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. (6 points-1 point each) a. Depreciation was recorded on the truck using the straight-line method. Assume a useful life of seven years and a residual value of $2,400. b. Office Supplies on hand, $890. c. Accrued Service Revenue, $3,250. d. Accrued Salaries Expense, $1,500. e. Prepaid Insurance for the month has expired. f. Unearned Revenue earned during the month, $4,350. 5. Prepare Murphy Delivery Service's income statement and statement of retained earnings for the month ended December 31,2020, and the classified balance sheet on that date. (12 points) 6. Journalize the closing entries, and post to the T-accounts (using the accounts we covered in class). (6 points) 7. Prepare a post-closing trial balance as of December 31,2020 . (5 points)
