Question

Murphy Delivery Service has completed closing entries and the accounting cycle for 2020. The business is now ready to record January 2021 transactions. Jan. 3 Collected $1,400 cash from customer on account. 5 Purchased office supplies on account, $1,250. 12 Performed delivery services for a customer and received $3,500 cash. 15 Paid employee salary, including the amount owed on December 31, $6,900. 18 Performed delivery services on account, $2,850. 20 Paid $900 on account. 24 Purchased fuel for the truck, paying $450 cash 27 Completed the remaining work due for Unearned Revenue. 28 Paid office rent, $3,000, for the month of January. 30 Collected $4,500 in advance for delivery service to be performed later. 31 Cash dividends of $1,850 were paid to stockholders. Requirements: 1. Record each transaction in the journal. Explanations are not required. (11 points-1 point each) 2. Post the transactions in the T-accounts. Don't forget to use the December 31, 2020, ending balances as appropriate. (8 points) 3. Prepare an unadjusted trial balance as of January 31, 2021. (6 points) 4. Journalize the adjusting entries using the following adjustment data and also by reviewing the journal entries prepared in Requirement 1. Post adjusting entries to the T-accounts. (5 points-1 each) a. Depreciation was recorded on the truck for the month. b. Office Supplies on hand, $350. c. Accrued Service Revenue, $2,400. d. Accrued Salaries Expense, $900. e. Prepaid Insurance for the month has expired. 5. Prepare Murphy Delivery Service's income statement and statement of retained earnings for the month ended January 31, 2021, and the classified balance sheet on that date. (15 points)

Answer 1

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Answer 2

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Answer 3

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Answer 4

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Answer 5

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Answer 6

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