Question

two pictures are the same. the middle is the first one

Requirements: 1. 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 2. Post the journal entries to the T-Accounts. 3. Prepare an Unadjusted Trial Balance as of December 31, 2019 4. Record the adjusting entries as of December 31, 2019. 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 delivery van has a useful life of five years and a residual value of $3,000. C. The prepaid insurance policy began on December 1, d. Office Supplies on hand are $450. e. The Note Payable on December 1 hes t rate of 7%. Interest and principle are due in 2 years 5. Post the adjusting entries to the T-Accounts. Note: You will be adding to the T-accounts you created in Step 2. 6. Prepare an Adjusted Trial Balance as of December 31, 2019. 7. Prepare the income statement and statement of stockholders' equity for the month ended December 31, 2019. Prepare the classified balance sheet as of December 31, 2019. 8. Record the closing entries as of December 31, 2019. 9. 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. 10. Prepare a Post-Closing Trial Balance as of December 31, 2019

Answer 1

Murfee Delivery Service Journal Enteries Date Particulars 1.12.2019 Cash a/c Dr. To Common Stock (Common Stock issued) Debit in $ Credit in $ 22000 22000 9000 1.12.2019 Delivery Van a/c Dr. To Note Payable (Delivery an purchased) 9000 1.12.2019 Prepaid Insurance a/c Dr. To Cash (6 months insurance paid) 600 1.12.2019 No Journal Entry 750 4.12.2019 Supplies a/c Dr. To Accounts Payable (Supplies on account) 750 2200 12.12.2019 Cash a/c Dr. To Service Revenue (Service for cash) 2200 3300 15.12.2019 Accounts Receivable a/c Dr. To Service Revenue (Services on account) 3300 Dr. 2400 18.12.2019 Salaries Expense a/c To Cash (Salaries paid) 2400

Date Particulars 20.12.2019 Cash a/c Dr. To Service Revenue (Service for cash) Debit in $ Credit in $ 10600 10600 2200 22.12.2019 Cash a/c Dr. To Unearned Revenue (Advance from client) 2200 3300 25.12.2019 Cash a/c Dr. To Accounts Receivable (Cash from debtors) 3300 150 27.12.2019 Utilities Expense a/c Dr. To Accounts Payable (Expense accrued) 150 Dr. Dr. 1400 1400 29.12.2019 Prepaid Rent a/c Rent Expense a/c To Cash (Rent paid) 2800 30.12.2019 Accounts Payable a/c Dr. To Cash (Creditors paid) 150 Dr. 2500 31.12.2019 Cash Dividends a/c To Cash (Dividends paid) 2500

Adjusting Enteries Trans. Particulars a. Salary Expense a/c To Salary Payable (Salary accrued) Dr. Debit in $ Credit in $ 2400 2400 100 Depreciation Expense a/c Dr. To Accum. Depre - Del. Van (To record depreciation) ( 9000 - 3000)/(5x12) 100 Insurance Expense a/c Dr. To Prepaid Insurance (Insurance expensed) 600 / 6 100 d. 300 Supplies Expense a/c Dr. To Office Supplies (Supplies expensed) 750 - 450 300 e. 53 Interest Expense a/c Dr. To Interest Payable (Interest accrued) 9000 x 7% x 1/12 Closing Enteries Date Particulars 31.12.2019 Income Summary a/c Dr. To Salaries Expense To Utilities Expense To Rent Expense To Depreciation Expense To Insurance Expense To Supplies Expense To Interest Expense (Expense accounts closed) Debit in $ Credit in $ 6903 4800 150 1400 100 100 16100 31.12.2019 Service Revenue a/c Dr. To Income Summary (Revenue accounts closed) 16100 31.12.2019 Income Summary a/c Dr. To Retained Earnings (Profits Transferred) 9198 Dr. 2500 31.12.2019 Retained Earnings a/c To Cash Dividends (Dividends recorded) 2500

Worksheet For the Month ending 31.12.2019 Unadjusted Adjustments Adjusted Post Closing Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 31850 31850 31850 0 300 750 1400 600 450 1400 500 9000 450 1400 500 9000 100 9000 100 750 2200 53 Particulars Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Delivery Van Accum. Depre - Del. Van Accounts Payable Unearned Revenue Interest Payable Salary Payable Note Payable Common Stock Retained Earnings Cash Dividends Service Revenue Salaries Expense Utilities Expense Rent Expense Depreciation Expense Insurance Expense Supplies Expense Interest Expense Totals 100 750 2200 53 2400 9000 22000 100 750 2200 53 2400 9000 22000 6698 2400 9000 22000 2500 2500 16100 16100 2400 2400 150 1400 100 100 300 4800 150 1400 100 100 300 52.5 52603 53 50050 50050 2953 2953 52603 43200 43200

16100 Statement of Income For the Month ending 31.12.2019 Service Revenue Less: Salaries Expense Utilities Expense Rent Expense Depreciation Expense Insurance Expense Supplies Expense Interest Expense Net Income 4800 150 1400 100 100 300 53 6903 9198 Statement of Retained Earnings For the Month ending 31.12.2019 Net Income Less:Cash Dividends 9198 -2500 6698

Amounts in $ Amounts in $ Balance sheet As at 31.12.2019 Assets Current Assets Cash Supplies Prepaid Rent Prepaid Insurance Amounts in $ Amounts in $ Liabilities Current Liabilities 31850 Accounts Payable 450 Unearned Revenue 1400 Interest Payable 500 34200 Salary Payable 750 2200 52.5 2400 5403 Non Current Assets Delivery Van Accum. Depre - Del. Van 9000 9000 -100 Non Current Liabilities Note Payable 8900 Shareholders Equity Common Stock Retained Earnings 43100 Total Liabilities & Equity 22000 6698 28698 43100 Total Assets