Question

The requirements for this problem: 1. Record cach transaction as a journal entry. 2. Post the transactions to T-accounts using the following chart of accounts. Cash Accounts Receivable Office Supplies Prepaid Insurance Truck Accumulated Deprec.- Truck Accounts Payable Salaries Payable Unearned Revenue Taylor, Capital Taylor, Withdrawals Income Summary Service Revenue Salaries Expense Rent Expense Deprec. Expense- Truck Insurance Expense Fuel Expense Off, Supplies Expense Advertising Expense 3. Prepare an unadjusted trial balance as of December 31, 2019. 4. Make adjusting journal entries using the following information. Post adjusting entries to the T-accounts. a. Accrued Salaries Expense of $800. b. Recorded depreciation on the truck of $300. c. Prepaid Insurance for the month has expired. d. Office Supplies on hand totaled $210. e. Unearned Revenue eamed during the month was $350. f. Accrued service revenue of $700. 5. Prepare an adjusted trial balance as of December 31, 2019. 6. Prepare Taylors Delivery Service's income statement and statement of owner's equity for the month ended December 31,2019, and classified balance sheet on that date. 7. Prepare the closing journal entries and post to T-accounts. Prepare a post-closing trial balance as of December 31, 2019.

i need help with 3-7 please. thanks!

Answer 1

As per guidelines only 4 parts will be answered.

Part 3- Unadjusted trial balance

Taylors Delivery Service Unadjusted Trial Balance 31-Dec-19 Particulars Debit Credit Cash 25450 Accounts Receivables 3500 Office Supplies 250 Prepaid Insurance 2000 Truck 30000 Accounts payable Unearned Revenue Taylor, Capital Taylor, Withdrawls 1200 Service Revenue Salaries Expense 600 Rent expense 300 Fuel Expense 250 Advertisement 63700 200 6000 45000 12500 150 63700

Since there was no accounts payable and december 30 account entry mentions that $50 is paid on account, it has been assumed that december 22, fuel was purchased on credit.

4. Adjusting journal entries

Date Debit Particulars 31-Dec Salaries Expense Salaries Payable Credit 800 800 300 31-Dec Depreciation Accumulated Depreciation 300 333 31-Dec Insurance Prepaid insurance 333 40 31-Dec Supplies Expense Office Supplies 350 31-Dec Unearned Revenue Service Revenue 350 700 31-Dec Accounts Receivable Service Revenue 700 Note- Insurance for 6 months is 2000, hence for one month which expired is 2000/12=333

5. Adjusted Trial Balance

Taylors Delivery Service Adjusted Trial Balance 31-Dec-19 Particulars Debit Credit Cash 25450 Accounts Receivables 4200 Office Supplies 210 Prepaid Insurance 1667 Truck 30000 Accumulated depreciation Accounts payable Salaries Payable Unearned Revenue Taylor, Capital Taylor, Withdrawls 1200 Service Revenue Salaries Expense 1400 Rent expense 300 Fuel Expense 250 Advertisement 150 Depreciation 300 Insurance expense 333 Supplies Expense 65500 300 200 800 350 45000 18850 40 65500

6. Income statement, statement of equity and balance sheet

Taylors Delivery Service Income Statement For the month ended december 31, 2019 Revenue Service Revenue 18850 1400 300 250 Less: Expenses Salaries Expense Rent expense Fuel Expense Advertisement Depreciation Insurance expense Supplies Expense 300 333 40 2773 Net Income 16077

Taylors Delivery Service Statement of owner's equity 31-Dec-19 Capital december 1, 2019 Owner Contribution Net income for the month 45000 16077 61077 1200 59877 Less: Withdrawls Capital december 31, 2019

Taylors Delivery Service Balance Sheet As at december 31, 2019 Current Assets Cash 25450 Accounts Receivables 4200 Office Supplies 210 Prepaid Insurance 1667 Total current assets Plant assets Truck 30000 Less: Accumulated depreciation 300 31527 29700 Total Assets 61227 Liabilities Current Liabilities Accounts payable Salaries Payable Unearned Revenue Total Liabilities Owners equity Total liabilities and owner's equity 200 800 350 1350 59877 61227

Let me know in case you have any questions.