Question

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.

This is an assignment that I am having a lot of trouble on.

Answer 1

Journal Entries Date Account Title and Explaination Debit Credit Post. Ref. Dec.1 15,000.00 30,000.00 $ Cash Truck Taylor, Capital (To record cash and truck invested into business) $ 45,000.00 Dec.1 2,000.00 Prepaid Insurance Cash |(To record insurance premium paid) 2,000.00 Dec. 7 Rent Expense 300.00 Cash 300.00 (To record rent expense paid) Dec. 8 3.000.00 Accounts Receivable Service Revenue To service provided on account) $ 3,000.00 250.00 Dec.11 Office Supplies Cash (To record office supplies purchased for cash) 250.00

Dec. 11 250.00 Office Supplies Cash || (To record office supplies purchased for cash) 250.00 Dec. 13 600.00 Salaries Expenses Cash (To salaries expenses paid) 600.00 $ 6,000.00 Dec. 15 Cash Unearned Revenue (To record advance received for services to be performed) $ 6,000.00 8,000.00 Dec. 18 Cash Service Revenue (To record service provided for cash) 8,000.00 1,000.00 Dec. 20 Cash Accounts Receivable (To record collection receivables) $ 1,000.00 Dec.22 250.00 Fuel Expenses Cash To record fuel expenses paid) 250.00

250.00 Dec.22 Fuel Expenses Cash (To record fuel expenses paid) 250.00 1,500.00 Dec.27 Accounts Receivable Service Revenue (To record service revenue provided on account) 1,500.00 Dec.28 $ 150.00 Advertising Expenses Cash |(To record advertising expenses paid) 150.00 Dec. 30 50.00 Accounts Payable Cash To record payment of payables) 50.00 Dec.31 Taylor, withdrawals $ 1,200.00 Cash 1,200.00 (To record withdrawings)