You are going to prepare the journal entries, trial balances, and financial statements related to the Winston Delivery Company for the month ended June 30, 2018.  Based on the information below, prepare the recording of transactions for the company during the month of June, then prepare the unadjusted trial balance, then the adjusting entries, the adjusted trial balance, the financial statements (Income Statement, Statement of Stockholders’ Equity, Balance Sheet and Cash Flow Statement), closing entries, and Post-closing trial balance.

You will prepare the above on an Excel spreadsheet which is attached, using different sheets for each requirement listed above.  

Record the following transactions in your journal, then (using t-accounts or similar) compute the ending balances in the accounts for the company and record them in the unadjusted trial balance.

June 1 Winston Delivery Company began operations by receiving $10000 cash and a truck with a fair value of $20,000 from Bob Winston.  The business issued Winston shares of common stock in exchange for the contribution.

June 1 Paid $1000 cash for a 4-month insurance policy.  The policy begins June 1.

June 4 Paid $500 cash for office supplies.

June 12Performed delivery services for a customer and received $2000 cash.

June 15Completed a large delivery job, billed the customer, $2500, and received a promise to college the $2500 in one week.

June 18 Paid employee salary of $1000.

June 20 Received $15000 for performing delivery services.

June 22 collected $800 in advance for delivery services to be performed later.

June 25 Collected $2500 cash from customer on account from June 15.

June 27 Purchased gas for the truck, paying $300 on account (Accounts Payable)

June 28 Performed delivery services on account $700

June 29 Paid office rent $1600 for month of June.

June 30 Paid $300 on account.

June 30Cash dividends of $3000 were paid to stockholder.

Use the following accounting from the chart of accounts to record the transactions in the journal. Explanations are not required.

Cash

Retained Earnings

Accounts Receivable

Dividends

Office Supplies

Income Summary

Prepaid Insurance

Service Revenues

Truck

Salaries Expense

Accum. Dep. – Truck

Depreciation Expense – Truck

Accounts Payable

Insurance Expense

Salaries Payable

Fuel Expense

Unearned Revenue

Rent Expense

Common Stock

Supplies Expense

After preparing the unadjusted trial balance, 6 adjusting entries on June 30 will be needed related to the following information:

-Accrued Salaries Expense $1000

-Depreciation on the truck uses straight line depreciation method with a useful life of five years and salvage or residual value of $5000

-Prepaid insurance for the month has expired

-office supplies on hand on June 30 is $100

-Unearned revenue earned during the month is $300

-accrued service revenues $650 not previously recorded

After recording the adjusting entries immediately above, the

adjusted trial balance should be prepared with the ledger accounts (cash, accounts receivable, etc.) with the resulting debit or credit balances.

After preparing the adjusted trial balance

the financial statements should be prepared in the following order using good form (including headings, dollar signs, double underlines, etc.):

Income Statement

Stmt. Of Stockholder’s Equity

Balance Sheet

Stmt of Cash Flows

Next, prepare the closing journal entries to close any temporary revenue, expense, and dividend accounts to adjust the ending retained earnings balance.

Finally prepare the post-closing Trial Balance with the remaining account balances (after closing) indicating their debit or credit balance.