Acc101 Comprehensive Problem 4 - Matthews Delivery Service (Complete Accounting Cycle)

Notice: There are several versions of this problem; under company name "Delivery Service" and the difference in these versions are in the amounts for the adjusting entries so please compare your requirement to this posted problem carefully.

Comprehensive Problem 4

Matthews Delivery Service Inc. completed the following transactions during its first month of operations for Jan. 2012.
a. Matthews Delivery Service began operations by receiving $6,000 cash and a truck valued at $11,000. The business gave Matthews capital to aquire these assets. (put truck in at value)
b.Paid $300 cash for supplies
c. Prepaid insurance, $700
d. Performed delivery services for a customer and received $800 cash
e. Completed a large delivery job billed customer 1500 and received a promise to collect the $1,500 within one week.
f. Paid employee salary $700
g. Received $12,000 cash for performing delivery services
h. Collected $600 in advance for delivery service to be performed later .
i. Collected $1,500 cash from a customer on account
j. Purchased fuel for truck paying $200 with a company credit card(credit accounts payable)
K Performed delivery services on account $900.
l. Paid office rent $600. This rent is not paid in advance.
m. Paid $200 on account.
n. Owner withdrew cash of $2,100.

1. Record each transaction in journal. Key each transaction by its letter . Explanations are not required.
2. Post transactions that you recorded in Requirement a in the in T-accounts.
Accounts Receivable
Prepaid Insurance
Delivery truck
Accumulated Depreciation
Accounts Payable
Salary Payable
Unearned Service Revenue
Matthews, Capital
Matthews, Drawing
Income Summary
Service Revenue
Salary Expense
Depreciation Expense
Insurance Expense
Fuel Expense
Rent Expense
Supplies Expense

3. Enter trial balance in worksheet for the month ended January 31 2012. Complete using adjustment data given January 31.
a. Accrued salary expense $700
b. Depreciation expense $60
c. Prepaid Insurance expired, $250.
d. Supplies on hand $200
e. Unearned service rev earned during January $500
4. Prepare Matthews Delivery Services' income statement and statement of owner's equity for the month ended January 31, 2012, and the classified balance sheet on that date. (on the income statement list expenses in decreasing order by amount that, is the largest expense first, smallest last.)
5. Journalize and pot the adjusting entries beginning with a.
6. Journalize and post the closing entries
7. Prepare a post closing trial balance at January 31.2012
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