On December 1, 2021, Thomas Delivery Service started a new business. Fourteen transactions occurred during December. Financial statements are prepared at the end of each month. Dec. 1 Thomas Delivery Service began operations by receiving $23,000 cash and a truck with a fair value of $9,000 from Mike Thomas. The business issued Thomas shares of common stock in exchange for this contribution. 2 Paid $1,200 cash for a six-month insurance policy The policy is effective December 1. 4 Paid $950 cash for office supplies. 8 Paid $1,550 cash for Merchandise. 10 Performed delivery services for a customer and received $2,400 cash. 12 Collected $2,000 in advance for delivery service to be performed later. 16 Completed a large delivery job, billed the customer, $3,800, and received a promise to collect the $3,800 within one week. 18 Paid employee salary, $600. 20 Received $9,000 cash for performing delivery services. 21 Sold merchandise inventory on account for $2,700. These goods cost the company $1,350 23 Collected $3,800 cash from customer on account. 26 Purchased fuel for the truck, paying $250 on account (Credit Accounts Payable) 23 Collected $3,800 cash from customer on account. 26 Purchased fuel for the truck, paying $250 on account. (Credit Accounts Payable) 28 Performed delivery services on account, $1,200. 29 Paid office rent, $1,200, for the month of December 30 Paid $250 on account. 31 Cash dividends of $2,800 were paid to stockholders. Requirements (Label ALL Work according to the Requirements) 1. Use Excel to Record each transaction in a journal entry (proper journal entry form) using the following chart of accounts. A journal form is provided to assist you. Explanations are not required. Cash Accounts Receivable Office Supplies Prepaid Insurance Merchandise Inventory Truck Accumulated Depreciation - Truck Accounts Payable Salaries Payable Unearned Revenue Common Stock Retained Earings Dividends Service Revenue Sales Revenue Cost of Goods Sold Salaries Expense Depreciation Expense-Truck Insurance Expense Fuel Expense Rent Expense Supplies Expense 2. Post the transactions in the T-accounts using the chart of accounts given. No Unadjusted Trial Balance is needed. 3. Journalize the adjusting entries using the adjustment data given. Post/add adjusting entries to the same T-accounts used previously. 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 $4,000. c. Prepaid Insurance for the month has expired. d. Office Supplies on hand, $450. d. Office Supplies on hand, $450. e. Uneamed Revenue earned during the month, $900. f. Accrued Service Revenue, $550. 4. Prepare an adjusted trial balance as of December 31, 2021. 5. Prepare Thomas Delivery Service's (1) Income Statement and (2) Statement of Retained Earnings for the month ended December 31, 2021, and the (3) 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. a ? 6. Answer the Following Questions: The first account listed on the Adjusted Trial Balance is b. The normal balance for Accounts Receivable is a C. The balance in cash is a debit/credit of ? d. ? e. ? f. ? g. ? Net Income/Loss for December was Total Liabilities amounted to Total debits on the Adjusted Trial Balance amounted to The normal balance for Office Supplies is a Salaries Expense for December was Retained Earnings on December 1, 2021 was The first journal entry on December 1 contains a Common Stock? h. 2 2 j to
