Question

I REALLY need help with PART 2 I have finished part 1 and on to Part 2 . If anyone one could help Thank you

Part 1

Dec. 01 2019   Miller Delivery Service Inc began operations by receiving $20,000 cash and a truck with a fair market value of $20,000, salvage value of 2,000, and a 5 year Useful life from Robert Miller. The business issued miller 30,000 shares of the $1 Par common stock in exchange for this contribution.

Dec. 02   Paid $1,000 cash for a four-month insurance policy. This policy begins December 1st.

Dec. 03   Paid $500 cash for office supplies.

Dec. 05   Performed delivery services for a customer and received $2,000 cash.

Dec. 07   Completed a delivery job, billed the customer for $2,500 and received a promise to collect the $2,500 within one week.

Dec. 08   Start writing a Bond contract to raise $100,000 for more trucks and a garage type building to hold them in.

Dec. 09   Purchased $300 of fuel for the truck, on account.

Dec. 12   Received $15,000 cash for performing delivery services.

Dec. 13   Collected $800 in advance for delivery services to be performed later.

Dec. 15   Collected $2,500 cash from a customer on account.

Dec. 18   Paid employee salary, $2,000.

Dec. 21   Issued $100,000, 5%, 10 year Bonds @ 105. Interest to be paid Jun 30 & Dec 30 each year starting in June of next year.

Dec. 22   Performed delivery services on account for $700.

Dec. 23   Paid office rent of 1,600 for the month of December.

Dec. 25   Purchased a Lot of land with a Fair market value of 10,000, A building with a Fair Market Value of 40,000 paying a total of $40,000 in cash for both.

Dec. 27   Submitted an order to purchase two more trucks with an estimated purchase price of $25,000 each.

Dec. 28   Paid $300 on account.

Dec. 30   Cash dividend of $3,000 was paid to stockholders. Since there is only one stockholder, there is no Declaration or Record Date for this transaction.

2.   Post the transactions in the General Ledger accounts using the ledger and chart of accounts provided.

3.   Prepare an unadjusted trial balance as of December 31, 2019.  

PART 2  

4.   Prepare a worksheet as of December 31, 2019.  

5   Journalize and Post the adjusting entries using the following data. Then enter the adjusting entries on the worksheet and complete the worksheet for the fiscal year ending Dec. 31 2019.

Dec. 31   a. Accrued salaries expense is $1,000.

Dec. 31   b. Depreciation for all assets is recorded using the modified Half-month Convention for depreciation.

Dec. 31   c. Prepaid Insurance for the month has expired.

Dec. 31   d. Office supplies on hand equal $100.

Dec. 31   e. Unearned Revenue that has been earned during the month of December equals $500.

Dec. 31   f. Accrued service revenue = $650.

6.   Prepare an adjusted trial balance as of December 31, 2019.

7.   Prepare Miller Delivery Service’s Income Statement, Statement of Retained Earnings and Classified Balance Sheet for the month ended December 31, 2019.

8.   Journalize the closing entries and post to the General Ledger accounts.

9.   Prepare a post- closing trial balance as of December 31, 2019.

Answer 1

2. Cash:

Date	Debit	Credit	Balance
Dec 01	20,000
Dec 02		1,000
Dec 03		500
Dec 05	2,000
Dec 12	15,000
Dec 13	800
Dec 15	2,500
Dec 18		2,000
Dec 21	105,000
Dec 23		1,600
Dec 25		40,000
Dec 28		300
Dec 30		3,000
			96,900

Accounts Receivable:

Date	Debit	Credit	Balance
Dec 07	2,500
Dec 15		2,500
Dec 22	700
Dec 31			700

Office Supplies:

Date	Debit	Credit	Balance
Dec 03	500
Dec 31			500

Prepaid Insurance :

Date	Debit	Credit	Balance
Dec 02	1,000
Dec 31			1,000

Truck:

Date	Debit	Credit	Balance
Dec 01	20,000
Dec 31			20,000

Buildings:

Date	Debit	Credit	Balance
Dec 25	32,000
Dec 31			32,000

Land:

Date	Debit	Credit	Balance
Dec 25	8,000
Dec 31			8,000

Accounts Payable:

Date	Debit	Credit	Balance
Dec 09		300
Dec 28	300
Dec 31			0

Unearned Service Revenue:

Date	Debit	Credit	Balance
Dec 13		800
Dec 31			800

Bonds Payable:

Date	Debit	Credit	Balance
Dec 21		100,000
Dec 31			100,000

Premium on Bonds Payable:

Date	Debit	Credit	Balance
Dec 21		5,000
Dec 31			5,000

Common Stock:

Date	Debit	Credit	Balance
Dec 01		30,000
Dec 31			30,000

Paid-in Capital in Excess of Par: Common Stock:

Date	Debit	Credit	Balance
Dec 01		10,000
Dec 31			10,000

Dividends:

Date	Debit	Credit	Balance
Dec 30	3,000
Dec 31			3,000

Service Revenue:

Date	Debit	Credit	Balance
Dec 05		2,000
Dec 07		2,500
Dec 12		15,000
Dec 22		700
Dec 31			20,200

Salaries Expense:

Date	Debit	Credit	Balance
Dec 18	2,000

Rent Expense:

Date	Debit	Credit	Balance
Dec 23	1,600

Fuel Expense:

Date	Debit	Credit	Balance
Dec 09	300