Question

Comprehensive Problem Taylors Delivery Service had the following transactions during December 2019. Doel Taylors Delivery Service began operations by receiving 517.000 cash and a truck with a fair value of $20,000 from the owner, Katelynn Taylor. The business gave Taylors capital in exchange for this contribution Dec 1 Paid S1,500 cash for 6-month insurance policy. The policy will begin on December 1. Dec 7 Paid office rent $600 for the month of December. Dec 8 Completed a large delivery job, billed the customer $1.500, and received a promise to collect the $1,500 within one week. Dec 11 Paid $850 cash for office supplies. Dec 13 Paid employee salary, $825. Dec 15 Collected $1,400 in advance for delivery service to be performed later. Dec 18 Received $7,700 cash for performing delivery services. Dec 20 Collected $1,200 cash from customer on account. Dec 22 Purchased fuel for the truck on account $250. Dec 27 Performed delivery services on account $1,200. Dec 28 Paid for advertising in a local newspaper, $300. Dec 30 Paid $150 on account. Dec 31 Owner withdrew cash of $1,400.

Answer 1

1. In the books of Taylors Delivery Service :

Date	General Journal	Debit	Credit
		$	$
Dec 1	Cash	17,000
	Truck	20,000
	Taylor, Capital		37,000
Dec 1	Prepaid Insurance	1,500
	Cash		1,500
Dec 7	Rent Expense	600
	Cash		600
Dec 8	Accounts Receivable	1,500
	Service Revenue		1,500
Dec 11	Office Supplies	850
	Cash		850
Dec 13	Salaries Expense	825
	Cash		825
Dec 15	Cash	1,400
	Unearned Revenue		1,400
Dec 18	Cash	7,700
	Service Revenue		7,700
Dec 20	Cash	1,200
	Accounts Receivable		1,200
Dec 22	Fuel Expense	250
	Accounts Payable		250
Dec 27	Accounts Receivable	1,200
	Service Revenue		1,200
Dec 28	Advertising Expense	300
	Cash		300
Dec 30	Accounts Payable	150
	Cash		150
Dec 31	Taylor, Withdrawals	1,400
	Cash		1,400

3.

Taylors Delivery Services Trial Balance December 31, 2019
Account Titles	Debit	Credit
	$	$
Cash	21,675
Accounts Receivable	1,500
Office Supplies	850
Prepaid Insurance	1,500
Truck	20,000
Accumulated Depreciation : Truck		0
Accounts Payable		100
Salries Payable		0
Unearned Revenue		1,400
Taylor, Capital		37,000
Taylor, Withdrawals	1,400
Service Revenue		10,400
Salaries Expense	825
Rent Expense	600
Depreciation Expense: Truck	0
Insurance Expense	0
Fuel Expense	250
Office Supplies Expense	0
Advertising Expensse	300
Totals	$ 48,900	$ 48,900

4. Adjusting entries:

Date	Account Titles	Debit	Credit
Dec 31, 2019		$	$
a.	Salaries Expense	750
	Salaries Payable		750
b.	Depreciation Expense: Truck	250
	Accumulated Depreciation : Truck		250
c.	Insurance Expense	250
	Prepaid Insurance		250
d.	Office Supplies Expense	440
	Office Supplies		440
e.	Unearned Revenue	350
	Service Revenue		350
f.	Accounts Receivable	500
	Service Revenue		500

5.

Taylors Delivery Services Adjusted Trial Balance December 31, 2019
Account Titles	Debit	Credit
	$	$
Cash	21,675
Accounts Receivable	2,000
Office Supplies	410
Prepaid Insurance	1,250
Truck	20,000
Accumulated Depreciation : Truck		250
Accounts Payable		100
Salaries Payable		400
Unearned Revenue		1,400
Taylor, Capital		37,000
Taylor, Withdrawals	1,400
Service Revenue		11,250
Salaries Expense	1,575
Rent Expense	600
Depreciation Expense: Truck	250
Insurance Expense	250
Fuel Expense	250
Office Supplies Expense	440
Advertising Expense	300
Totals	$ 50,400	$ 50,400