During the period January to December 2020 the company completed the following transactions: Kay’s Delivery Service began operations by receiving $180,000 cash and a truck valued at $250,000. The business gave Kay capital to acquire these assets. Paid $19,000 cash for supplies. Prepaid insurance, $28,000. Performed delivery services for a customer and received $5,500 cash. Completed a large delivery job, billed the customer $35,500, and received a promise to collect the $35,500 within three (3) months. Paid employees salary, $65,700. Received $15,000 cash for performing delivery services. Collected $12,000 in advance for delivery service to be performed later. Collected $35,500 cash from a customer on account. Purchased fuel for the truck, paying $29,800 with a company credit card. (Credit Accounts payable) Performed delivery services on account, $4,500. Paid office rent, $85,000 for the year. Paid $20,800 on account relating to fuel purchased. Owner withdrew cash of $15,300. Requirements: Record each transaction in the journal and key each transaction by its letter. Narrations are not required. Post the transaction your recorded in requirement 1 in the T accounts as per the company’s accounts as provided. Prepare the unadjusted trail balance for the year ended December 31, 2020, based on the info already presented.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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During the period January to December 2020 the company completed the following transactions:

Kay’s Delivery Service began operations by receiving $180,000 cash and a truck valued at $250,000. The business gave Kay capital to acquire these assets.
Paid $19,000 cash for supplies.
Prepaid insurance, $28,000.
Performed delivery services for a customer and received $5,500 cash.
Completed a large delivery job, billed the customer $35,500, and received a promise to collect the $35,500 within three (3) months.
Paid employees salary, $65,700.
Received $15,000 cash for performing delivery services.
Collected $12,000 in advance for delivery service to be performed later.
Collected $35,500 cash from a customer on account.
Purchased fuel for the truck, paying $29,800 with a company credit card. (Credit Accounts payable)
Performed delivery services on account, $4,500.
Paid office rent, $85,000 for the year.
Paid $20,800 on account relating to fuel purchased.
Owner withdrew cash of $15,300.