1. Record each transaction (journalize) in the general journal
2. Post the transactions to the T-accounts
3. Prepare an unadjusted balance as of December 31, 2018
4. Record each adjusting entry (journalize) in the general journal
5. Post the adjusting entries to the T-accounts
6. Prepare an adjusted trial balance as of December 31, 2018

Activity for the Month of December 2018 Dec. 1 Magoo Delivery Company began operations by receiving $30,000 in cash in exchange for common stock Dec. 1 Purchased a delivery truck for the amount of $11,000 cash. The residual value of the truck is $10,000. It will be depreciated using the straight-line method Dec. 1 Paid $1200 cash for a twelve month insurance policy on its delivery trucks. The policy begins Dec. 1 2018 and expires on Dec 1 2019. Dec. 4 Paid $800 cash for office supplies Dec. 12 Performed delivery services for a customer and received $2,000 cash Dec. 15 Performed delivery services in the amount of $5,000 for a customer who promises to pay within 30 days Dec. 18 Paid employee salaries in the amount of $500 cash Dec. 20 Performed delivery services for a customer and received cash in the amount of $4000 Dec. 22 Collected $3,000 cash for delivery services to be performed at a later point in time Dec. 25 Received a partial cash payment from a customer of $2,500 from the services performed back on December 15th Dec. 28 Performed delivery services on account in the amount of $800 Dec. 31 Cash dividends of $500 were paid to stockholders Data for adjusting entries (end of the month): ADJ A Salaries expense of $500 has accrued (incurred a salaries expense in the month of December but this amount has not yet been paid to employees) ADJ B Depreciation on the truck should be recorded using the straight-line method. Assume a useful life of 10 years and a residual value of $1,000 (note that we are only recorded depreciation for a one month period of time (that is, just the month of December 2018) ADJ C A portion of prepaid insurance has expired ADJ D A review of office supplies on hand shows a balance of $600 ADJ E Unearned Revenue earned during the month amounts to $800