Requirements:

Record all necessary journal entries for the December transactions. Note: Not all transactions in

December require a journal entry. If no entry is required, you may choose to simply omit the

transaction, or you may choose to record the date of the transaction and write $"$NO ENTRY" in the

space where the accounts & amounts would normally be written.

Post the journal entries to the T$-$Accounts.

Prepare an Unadjusted Trial Balance as of December $31,2021.$

Record the adjusting entries as of December $31,2021.$ Additional information necessary for

adjusting entries is below:

a$.$ Accrued Salaries for the last two weeks in December, $$2,400,$ will be paid in January.

b$.$ The prepaid insurance policy began on December $1.$

c$.$ Office Supplies on hand are $$450.$

d$.$ The Note Payable on December $1$ has an interest rate of $7\%.$ Interest and principle are due

in $2$ years.

e$.$ Weekly deliveries made to Liyam Hemmensworth in the month of December totaling

$$8,000$ have not been invoiced.

Post the adjusting entries to the T$-$Accounts. Note: You will be adding to the T$-$accounts you created

in Step $2.$

Prepare an Adjusted Trial Balance as of December $31,2021.$

Prepare the income statement and statement of stockholders' equity for the month ended

December $31,2021.$ Prepare the classified balance sheet as of December $31,2021.$

Record the closing entries as of December $31,2021.$

Post the closing entries to the T$-$Accounts. Note: You will be adding to the T$-$accounts you created in

Step $2$ and updated in Step $5.$

Prepare a Post$-$Closing Trial Balance as of December $31,2021.$

COMPREHENSIVE PROBLEM $($Completing the Accounting Cycle $-$ Chapters $1-3)$

Murfee Delivery Service is a delivery service company that delivers anything to anyone anywhere. The

company intends to stand out due to its strict confidentiality policy forbidding any disclosure of its

customers' personal information, for a profit or otherwise. The company also adds, as part of its robust

confidentiality policy, it will never poke fun or humiliate its customers for the ridiculous, and sometimes

even embarrassing, items they choose to have delivered. Murfee Delivery Service began operations on

December $1,2021.$

The following transactions occurred during the month of December:

Dec $1$ Sold $$22,000$ of common stock to Eddie Murfee, the founder of the company.

Dec $1$ Purchased a $$9,000$ delivery van by signing a note, agreeing to repay principle and interest in $2$

years. The van was purchased from Eddie's cousin's boyfriend, Christopher Farleigh. The van

was in great condition, especially considering that Christopher lived in the van down by the river

for a short period of time while he was looking for an apartment.

Dec $1$ Paid $$600$ in advance for a six$-$month general liability insurance policy from Ned Ryerson

Insurance Group.

Dec $1$ Hired $2$ delivery drivers, Clark Griswold and Van Wilder. Surprisingly, both drivers passed their

drug tests and background checks, and they were able to begin working immediately.

Dec $4$ Purchased $$750$ of office supplies from Dunder Mifflin Office Supply Store on account.

Dec $12$ Delivered a "Get Well" Deluxe Wellness Kit to Ferris Bueller and received $$2,200$ cash.

Dec $15$ Delivered $243$ cases of wine for the annual Catalina Wine Mixer in California. Willis Ferrill was

billed $$3,300$ on account for services rendered.

Dec $18$ Paid employee salaries to Clark and Van totaling $$2,400.$

Dec $20$ Received $$10,600$ payment for services from Owen Wilzen for delivering wedding gifts to $106$

couples.

Dec $22$ Collected $$2,200$ in advance from Billy Muree to have Punxsutawney Phil delivered from his

home in Calabasas, California, to Punxsutawney, Pennsylvania, in time for a special appearance

on February $2^{nd}.$

Dec $25$ Collected $$3,300$ from Willis Ferrill for the December ${15}^{th}$ delivery.

Dec $27$ Received a bill for $$150$ from Frankenstein Electric Company for December utilities, due on

January $10.$

Dec $29$ Paid office rent, $$2,800,$ to the property manager, Jim Halpert, for December and January Rent.

Dec $30$ Paid $$150$ to Frankenstein Electric Company for the bill received on December ${27}^{th}.$

Dec $31$ Paid cash dividends of $$2,500$ to stockholders.