Question

Comprehensive Problem for Chapters 1-4 Journalizing, Posting, Work Sheet, Adjusting, Closing the Financial Statements Dwyer Delivery Service completed the following transactions during its first of operations, January 2009 a. Dwyer Delivery Service, a proprietorship, began operations by receive from the owner $5,000 cash and a truck valued at $10,000. The bus gave Paul Dwyer, the owner, capital in the business b. Paid $200 cash for supplies. c. Prepaid insurance, 5600. d. Performed delivery services for a customer and received $700 cash e. Complete a large delivery job, billed the customer $2,000, and received a promise to collect the $2,000 within one week. t. Paid employee salary: $800. . Received $900 cash for performing delivery services. h. Collected $500 in advance for delivery service to be performed later . Collected $2,000 cash from a customer on account. Purchased fuel for the truck, paying $100 with a company credit card Credit Accounts Payable. k. Performed delivery services on account, $800. 1. Paid office rent, 5500. This rent is not paid in advance. m.paid $100 on account n. Dwyer withdrew $1,900 for personal use. Requirements 1. Record cach transaction in the journal, using the account sides given belos Key each transaction by its letter Explanations are not required. (pp. 70-76, 131-133, 138-139) 2. Open the following accounts in this sequence: Cash Service Revenge Accounts Receivable Salary Expense Supplies Depreciation Expense Prepaid Insurance Insurance Expense Delivery Truck Fuel Escpense Accumulated Depreciation Rent Expense Accounts Payable Supplies Expense Salary Payable Uneared Service Revenge Paul Dwyes Capital Paul Dwyer, Withdrawals Income Summary The post the transactions that you recorded in requirement 1. (pp. 70-76) 242 Chapter 4

Comprehensive Problem for Chapters 1-4 Journalizing, Posting, Work Sheet, Adjusting, Closing the Financial Statements Dwyer Delivery Service completed the following transactions during its first of operations, January 2009 a. Dwyer Delivery Service, a proprietorship, began operations by receive from the owner $5,000 cash and a truck valued at $10,000. The bus gave Paul Dwyer, the owner, capital in the business b. Paid $200 cash for supplies. c. Prepaid insurance, 5600. d. Performed delivery services for a customer and received $700 cash e. Complete a large delivery job, billed the customer $2,000, and received a promise to collect the $2,000 within one week. t. Paid employee salary: $800. . Received $900 cash for performing delivery services. h. Collected $500 in advance for delivery service to be performed later . Collected $2,000 cash from a customer on account. Purchased fuel for the truck, paying $100 with a company credit card Credit Accounts Payable. k. Performed delivery services on account, $800. 1. Paid office rent, 5500. This rent is not paid in advance. m.paid $100 on account n. Dwyer withdrew $1,900 for personal use. Requirements 1. Record cach transaction in the journal, using the account sides given belos Key each transaction by its letter Explanations are not required. (pp. 70-76, 131-133, 138-139) 2. Open the following accounts in this sequence: Cash Service Revenge Accounts Receivable Salary Expense Supplies Depreciation Expense Prepaid Insurance Insurance Expense Delivery Truck Fuel Escpense Accumulated Depreciation Rent Expense Accounts Payable Supplies Expense Salary Payable Uneared Service Revenge Paul Dwyes Capital Paul Dwyer, Withdrawals Income Summary The post the transactions that you recorded in requirement 1. (pp. 70-76) 242 Chapter 4

Answer 1

1. Recording in Journal entries :-

a) Cash Account Dr 5,000

Delivery Truck Account Dr 10,000

To Paul Dwyer CApital Account 15,000

( Being the Capital introduced into the business by the proprietor)

b) Supplies Account DR. 200

To Cash Account 200

( Being the purchase of Supplies)

c) Prepaid Insurance Account Dr. 600

To Cash Account 600

d) Cash Account DR 700

To Service Income 700

e) Accounts Receivable DR. 2,000

To Service Income 2,000

f) Salaries Account Dr. 800

To Cash Account 800

g) Cash Account Dr. 900

To Service Income 900

h) CAsh Account Dr 500

To Unearned Service Income 500

i) Cash Account Dr 2,000

  To Unearned Service Income 2000

j) Fuel Expenses DR 100

To Accounts Payable A/c 100

k) Accounts Receivable a/c 800

To Service Income 800

l) Rent Expense A/c Dr 500

To Cash Account 500

m) Accounts payable DR 100

To CAsh Account 100

n) Paul Dwyers Withdrawals A/c Dr 1,900

To CAsh Account 1,900

			Cash Account
Dr						Cr
To	Paul Dwyer Capital a/c	By Supplies A/c	200
			5000	By Salaries A/c	800
				By Rent Expenses A/c	500
To	Service Income	700	By Accounts Payable	100
To	Unearned Service Account	2000	By Paul Dwyer Withdrawal	1900
To	Service Income	900	By Prepaid Insurance	600
To	Unearned Service Inc	500	By Balance C/fd	5000
			9,100			9100
To Balance b/fd		5,000

			Accounts Receivable
DR						Cr
To	Service Income	2000
To	Service Income	800
				By Bal C/fd	2800
			2800			2800
To	Balance B/fd	2800

			Supplies A/c
Dr						Cr
To Cash Account		200
				By Bal c/fd	200
			200			200
To Balance B/fd		200

			Delivery Truck A/c
Dr						Cr
To	Paul Dwyer Capital A/c
			10000
				By Bal C/fd	10,000
			10,000			10,000
	To Balance B/fd	10,000

			Accounts Payable
Dr						Cr
To Cash A/c		100	By	Fuel Expenses	100
			100				100

			Salaries Accounts
Dr						Cr
To Cash			800
				By Bal C/fd	800
			800			800
To Balance b/fd		800

			Unearned Service Income
DR						Cr
				By CasH Account	500
				By Cash Account	2000
To Balance C/fd		2500
			2500			2500
				By Balance C/fd	2500

			Fuel Expenses A/c
DR						Cr
to Accounts Payable	100
				By Bal C/fd	100
			100			100
To Blance B/fd		100

			Rent ExpensesA/c
Dr						Cr
To Cash A/c		500
				By Balance C/fd	500
			500			500
To Balance B/fd		500

			Paul Dwyers Withdrawal A/c
Dr						Cr
To Cash			1,900
				By Balance C/fd
			1900				1900
To Balance B/fd		1900

			Paul Dwyer Capital A/c
Dr						Cr
				By Cash Account	5000
				By Delivery Truck A/c
						10,000
To Balance C/fd		15,000
			15,000			15,000
				By Balance B/fd	15,000