Part (B) Accounting Cycle Comprehensive Problem

Best solutions, Inc. completed the following transactions during January 2019:

1. Shareholders invested in the business $60,000 cash and a delivery truck valued at $72,000 in exchange for common stock.
2. Purchased supplies for $3000 cash.
3. Paid $5,500 for a one-year insurance policy, effective January1.
4. Performed delivery services for a customer and received $4,000 cash.
5. Completed a large delivery job for a customer on account for $15,000.
6. Paid $10,000 for employee salaries.
7. Performed delivery services for customers and received $110,000 cash.
8. Collected $5,000 in advance for delivery service to be performed later.
9. Collected $7,000 cash from a customer on account.
10. Purchased fuel for the truck, paying $3,600 with a company credit card (Credit accounts payable).
11. Performed delivery services on account, $9,500.
12. Paid office rent $2,400.
13. Paid $2,000 for accounts payable.
14. Paid cash dividends of $18,000.

Requirements:

1. Record each transaction in the journal. Key each transaction by its letter (Explanations are not required).

(That was solving)

Date	Account Title and Descriptions	Dr	Cr
a	Cash Delivery tuck common stock	60,000 $ 72,000 $	132000 $
b	suppliers cash	13000 $	3000 $
c	Prepaid Insurance Cash	$5,500 $	$5,500 $
d	Cash Service Revenues	4,000 $	4,000 $
e	A/R Service Revenues	15,000$	15,000$
f	Salaries Expense Cash	10,000 $	10,000 $
g	Cash services revenue	110,000 $	110,000 $
h	Cash unearned services revenue	5,000 $	5,000 $
i	Cash A/R	7,000 $	7,000 $
j	Fuel charges A/P	3,600 $	3,600 $
k	A/R services revenue	9,500$	9,500$
I	Rent cash	2,400$	2,400$
m	A/R cash	2,000 $	2,000 $
n	Dividends cash	18,000$	18,000 $

2. Post the transactionsthat you recorded in requirement 1 to the ledger accounts using T-accounts. The ledger for Best solutions contains the following accounts:

Cash Service revenue

Accounts receivable Salaries expense

Supplies Depreciation expense

Prepaid insurance Insurance expense

Delivery truck Fuel expense

Accumulated depreciation rent expense

Accounts payable supplies expense

Salaries payable

Unearned service revenue

Common stock

Retained earnings