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This is an assignment that I am having a lot of trouble on. Comprehensive Problem Taylors Delivery Service had the following transactions during December 2019:
This is an assignment that I am having a lot of trouble on.
Comprehensive Problem Taylors Delivery Service had the following transactions during December 2019: Dec 1 Taylors Delivery Service began operations by receiving $15,000 cash and with a fair value of $30,000 from the owner, Rue Taylor. The business ga Taylors capital in exchange for this contribution. Dec 1 Paid $2,000 cash for a 6-month insurance policy. The policy will begin on December 1. Dec 7 Paid Office Rent $300 for the month of December. Dec 8 Completed a large delivery job, billed the customer, $3,000 and received a promise to collect the $3,000 within one week. Dec 11 Paid $250 cash for office supplies. Dec 13 Paid employee salary, $600. Dec 15 Collected $6,000 in advance for delivery service to be performed later. Dec 18 Received $8,000 cash for performing delivery services. Dec 20 Collected $1,000 cash from customer on account. Dec 22 Purchased fuel for the truck, paying $250. Dec 27 Performed delivery services on account $1,500. Dec 28 Paid for advertising in a local newspaper, $150. Dec 30 Paid $50 on account. Dec 31 Owner withdrew cash of $1,200. The requirements for this problem: 1. Record each transaction as a journal entry. 2. Post the transactions to T-accounts using the following chart of accounts. Cash Accounts Receivable Office Supplies Prepaid Insurance Truck Accumulated Deprec.- Truck Accounts Payable Salaries Payable Unearned Revenue Taylor, Capital Taylor, Withdrawals Income Summary Service Revenue Salaries Expense Rent Expense Deprec. Expense - Truck Insurance Expense Fuel Expense Off. Supplies Expense Advertising Expense 3. Prepare an unadjusted trial balance as of December 31, 2019. 4. Make adjusting journal entries using the following information. Post adjusting entries to the T-accounts. a. Accrued Salaries Expense of $800. b. Recorded depreciation on the truck of $300. c. Prepaid Insurance for the month has expired. d. Office Supplies on hand totaled $210. e. Unearned Revenue earned during the month was $350. f. Accrued service revenue of $700. 5. Prepare an adjusted trial balance as of December 31, 2019. 6. Prepare Taylors Delivery Service's income statement and statement of owner's equity for the month ended December 31,2019, and classified balance sheet on that date. 7. Prepare the closing journal entries and post to T-accounts. Prepare a post-closing trial balance as of December 31, 2019Step by Step Solution
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