Question

Solve for Req 5.

M er Delivery Service completed the following transactions during December 2016 (Click the icon to view the transactions.) 1. Record each transaction in the journaling the following chart of accounts Explanations are not required Cash Read the requirements Accounts Recovable Office Supplies Prepaid Insurance Retained Emings Dividends Income Summary Dec Salaries Expense Depreciation Expense --Truck Insurance Expense Truck Accumulated Depreciation ---Truck Accounts Payable Salaries Payable Unced Revenue Common shock Rent Expense Suse 1 Miller Delivery Service began operations by receiving $10,000 cash and a truck with a fair value of $20,000 from Robert Miller. The business issued Miller shares of common stock in exchange for this contribution 1 Paid $1.000 cash for a four-month insurance policy. The policy begins December 1 4 Paid $500 cash for office supplies. 12 Performed delivery services for a customer and received $2,000 cash. 15 Completed a large delivery job, billed the customer, $2,500, and received a promise to collect the $2,500 within one week 18 Paid employee salary, $1,000 20 Received $15.000 cash for performing delivery services 22 Collected $800 in advance for delivery service to be performed later 25 Collected $2,500 cash from customer on account 27 Purchased fuel for the truck, paying $300 with on account (Credit Accounts Payable) 28 Performed delivery services on account. 5700 20 Paid office rent $1,600, for the month of December 30 Paid $300 on account 31 Cash dividends of $3,000 were paid to stockholders 2. Post the transactions in the T-accounts 3. Prepare an unadjusted trial balance as of December 31, 2016 4. Prepare a worksheet as of December 31, 2015 s. Joumatize the adhusting entres wong the tollowing ustrert data and who by owing the journal entries prepared in Regement 1 Postad es to the T-accounts Adustment dat Accrued Salaries Expense $1.000 b. Depreciation was recorded on the truck ng the stra t ed Assume a useful of 5 years and a salvag ue of 55.000 Prepaid Insurance for the month has expired d. Office Supplies on hand $100 e. Uneamed Revenue med during the more 5300 Accued Service Revenue 50 6. Prepare an adjusted trial balance as of December 31, 2016 7. Prepare Miller Delivery Service's com m ent and statement of retained earrings for the month ended December 31, 2016. and the classified balance sheet on that date on the income statements expenses in decreasing onder by amount that is the largest expenses the most 8. Joure the countries and post to the accounts 9. Prepare a post-closing bra balances of December 31, 2016

Answer 1

Req 5

Adjusting entries
Date	Account	Debit	Credit	Calculation
31-Dec	Salaries expense	$        1,000
Adj (a)	Salaries Payable		$        1,000
31-Dec	Depreciation expense- Truck	$           250		=(20,000-5,000)/5*1/12
Adj (b)	Accumulated Depreciation - Truck		$           250
31-Dec	Insurance expense	$           250		=1,000/4
Adj (c)	Prepaid Insurance		$           250
31-Dec	Supplies expense	$           400		=500-100
Adj (d)	Office Supplies		$           400
31-Dec	Unearned Revenue	$           300
Adj (e)	Service Revenue		$           300
31-Dec	Accounts Receivable	$           650
Adj (f)	Service Revenue		$           650

Credit Credit Date Debit Date Office Supplies 4-Dec $ 500 Adj (d) Date Debit Date Prepaid Insurance 1-Dec $ 1,000 Adj (C) $ 400 $ 250 Miller Delivery Service T Accounts Date Debit Date Credit Date Debit Date Credit Cash Accounts Receivable 1-Dec $10,000 1-Dec $1,000 15-Dec $ 2,500 25-Dec $ 2,500 12-Dec $ 2,000 4-Dec $ 500 28-Dec $ 700 20-Dec $ 15,000 18-Dec $ 1,000 Adj (f) $ 650 22-Dec $ 800 29-Dec $ 1,600 25-Dec $ 2,500 30-Dec $ 300 31-Dec $ 3,000 Bal. Bal. $ 22,900 Truck 1-Dec $ 20,000 Bal. $ 1,350 Accumulated Depreciation - Truck Adj (b) $ 250 Bal. $ 100 Accounts Payable 30-Dec $ 300 27-Feb $ $ 750 Salaries Payable Adj (a) 300 $1,000 Bal. $ . $ 1,000 $ 20,000 Unearned Revenue $ 300 22-Dec $ Bal. $ 250 Common Stock 1-Dec $ 30,000 Bal. Retained Earnings Bal. Dividends 31-Dec $ 3,000 Adj (e) 800 $ 30,000 Bal. Bal. Salaries expense 18-Dec $ 1,000 Adj (a) $ 1,000 Bal. Depreciation expense- Truck Adj (b) $ 250 $ 3,000 Insurance expense $ 250 Adj (c) Bal. $ 500 Service revenue 12-Dec $ 2,000 15-Dec $ 2,500 20-Dec $ 15,000 28-Dec $ 700 Adj (e) $ 300 Adj (f) $ 650 Bal. $ 21,150 Bal. Bal. Bal. $ 2,000 Rent expense 29-Dec $ 1,600 Fuel expense 300 $ 250 Supplies expense $ 400 $ 250 Income Summary 27-Feb $ Adj (d) Bal. $ 300 Bal. $ 1,600 Bal. $ 400 Bal. $-

Miller Delivery Service	Unadjusted TB			Adjustments			Adjusted TB
Account Names	Debit	Credit		Debit	Credit		Debit	Credit
Cash	22,900						22,900
Accounts Receivable	700			650			1,350
Office Supplies	500				400		100
Prepaid Insurance	1,000				250		750
Truck	20,000						20,000
Accumulated Depreciation - Truck		-			250			250
Accounts Payable		-						-
Salaries Payable		-			1,000			1,000
Unearned Revenue		800		300				500
Common Stock		30,000						30,000
Retained Earnings		-						-
Dividends	3,000						3,000
Income Summary		-						-
Service Revenue		20,200			950			21,150
Salaries expense	1,000			1,000			2,000
Depreciation expense- Truck	-			250			250
Insurance expense	-			250			250
Fuel expenses	300						300
Rent expense	1,600						1,600
Supplies expense	-			400			400
Totals	51,000	51,000		2,850	2,850		52,900	52,900

Req 1 - Journal entries

Miller Delivery Service
Journal entries
Date	Account	Debit	Credit
1-Dec	Cash	$     10,000
	Truck	$     20,000
	Common Stock		$     30,000
1-Dec	Prepaid Insurance	$        1,000
	Cash		$        1,000
4-Dec	Office Supplies	$           500
	Cash		$           500
12-Dec	Cash	$        2,000
	Service Revenue		$        2,000
15-Dec	Accounts Receivable	$        2,500
	Service Revenue		$        2,500
18-Dec	Salaries expense	$        1,000
	Cash		$        1,000
20-Dec	Cash	$     15,000
	Service Revenue		$     15,000
22-Dec	Cash	$           800
	Unearned Revenue		$           800
25-Dec	Cash	$        2,500
	Accounts Receivable		$        2,500
27-Feb	Fuel expenses	$           300
	Accounts Payable		$           300
28-Dec	Accounts Receivable	$           700
	Service Revenue		$           700
29-Dec	Rent expense	$        1,600
	Cash		$        1,600
30-Dec	Accounts Payable	$           300
	Cash		$           300
31-Dec	Dividends	$        3,000
	Cash		$        3,000