240 chapter 4 COMPREHENSIVE PROBLEMS sComprehensive Problem

240 chapter 4 COMPREHENSIVE PROBLEMS sComprehensive Problem 1 for Chapters 1-4 Murphy Delivery Service completed the following transactions during December 2018 Murphy Delivery Service began operations by receiving $13,000 cash and a truck with a fair value of $9,000 from Russ Murphy. The business issued Murphy capital in exchange for this contribution 1 Paid $600 canh for a sis month insurance policy. The poliky begins December 1 4 Paid 5759 cash for office supplies. 12 Performed delivery services for a customer and received $2,200 cash 15 Completed a large delivery job, billed the customer, $3,300, and received a promise to collect the 33,300 within one week 18 Paid employee salary, $800 20 Received $7,000 cash for performing delivery services. 22 Collected $2,200 in advance for delivery service to be performed later 25 Colected 53,300 cash from customer on account. 27 Purchased fuel for the truck, paying 5150 on account. (Credit Accounts Payable) 28 Performed delivery services on account, $1,400 29 Paid office rent, $1,400, for the month of December 30 Paid $150 on account 31 Murphy withdrew cash of $2,500 Requirements nd each transaction in the journal using the following chart of accounts Explanations are esot required 1. Reco Murphy, Withdrawals Income Summary Service Revenue Salaries Expense Cash Accounts Receivable Office Supplies Prepaid Insurance Truck Accumulated Depreciation-Truck Accounts Payable Salaries Payable Unearned Revenue Murphy, Capital Insurance Expense Fuel Expense Rent Expense Supplies Expense 2 Post the transactions in the T accounts 3. Prepare an unadjusted trial balance as of December 31, 2018. 4. Prepare a worksheet as of December 31, 2018 (optional). 5. 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

Solution

2.1 Cash account

2.2 Service revenue account

2.3 Account receivable

2.4 Account payable

Note: Italic, bold and underlined amounts are the closing balances of the respective accounts.

3. Unadjusted Trial balance

5. Journal entries in the books of Murphy Delivery Services.

1. Journal entries in the books of Murphy Delivery Services.