PARTI: The following transactions occurred for Murphy Delivery Service during December 2020: Dec. 1 Murphy Delivery Service began operations by receiving $22,000 cash and a truck with a fair value of $15,000 from Russ Murphy. The business issued Murphy shares of common stock in exchange for this contribution. 1 Paid $4,080 cash for a one-year insurance policy. The policy begins on December 1. 4 Paid $1,400 cash for office supplies. 12 Performed delivery services for a customer and received $4,800 cash. 15 18 20 Completed a large delivery job, billed the customer, $11,400, and received a promise to collect the $11,400 within one week Paid employee salary, $3,600. Received $7,850 cash for performing delivery services. 22 Collected $6,400 in advance for delivery service to be performed later. 25 Collected $11,400 cash from a customer on account. 27 Purchased fuel for the truck, paying $750 on the account. (Credit Accounts Payable) 28 Performed delivery services on account, $5,750. 29 Paid office rent, $2,550, for the month of December. 30 Paid $460 on the account. 31 Cash dividends of $3,450 were paid to stockholders. Assume that Murphy Delivery Service started its operations in December 2020 and the beginning balance in all accounts is zero. Cash Accounts Receivable Office Supplies Prepaid Insurance Truck Accumulated Depreciation-Truck Accounts Payable Salaries Payable Unearned Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Depreciation Expense-Truck Insurance Expense Fuel Expense Rent Expense Supplies Expense 6. Journalize the closing entries, and post to the T-accounts (using the accounts we covered in class).
PARTI: The following transactions occurred for Murphy Delivery Service during December 2020: Dec. 1 Murphy Delivery Service began operations by receiving $22,000 cash and a truck with a fair value of $15,000 from Russ Murphy. The business issued Murphy shares of common stock in exchange for this contribution. 1 Paid $4,080 cash for a one-year insurance policy. The policy begins on December 1. 4 Paid $1,400 cash for office supplies. 12 Performed delivery services for a customer and received $4,800 cash. 15 18 20 Completed a large delivery job, billed the customer, $11,400, and received a promise to collect the $11,400 within one week Paid employee salary, $3,600. Received $7,850 cash for performing delivery services. 22 Collected $6,400 in advance for delivery service to be performed later. 25 Collected $11,400 cash from a customer on account. 27 Purchased fuel for the truck, paying $750 on the account. (Credit Accounts Payable) 28 Performed delivery services on account, $5,750. 29 Paid office rent, $2,550, for the month of December. 30 Paid $460 on the account. 31 Cash dividends of $3,450 were paid to stockholders. Assume that Murphy Delivery Service started its operations in December 2020 and the beginning balance in all accounts is zero. Cash Accounts Receivable Office Supplies Prepaid Insurance Truck Accumulated Depreciation-Truck Accounts Payable Salaries Payable Unearned Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Depreciation Expense-Truck Insurance Expense Fuel Expense Rent Expense Supplies Expense 6. Journalize the closing entries, and post to the T-accounts (using the accounts we covered in class).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:PARTI:
The following transactions occurred for Murphy Delivery Service during December 2020:
Dec. 1 Murphy Delivery Service began operations by receiving $22,000 cash and a truck
with a fair value of $15,000 from Russ Murphy. The business issued Murphy
shares of common stock in exchange for this contribution.
1
Paid $4,080 cash for a one-year insurance policy. The policy begins on December
1.
4
Paid $1,400 cash for office supplies.
12 Performed delivery services for a customer and received $4,800 cash.
15 Completed a large delivery job, billed the customer, $11,400, and received a
promise to collect the $11,400 within one week
18 Paid employee salary, $3,600.
20
Received $7,850 cash for performing delivery services.
22 Collected $6,400 in advance for delivery service to be performed later.
25
Collected $11,400 cash from a customer on account.
27 Purchased fuel for the truck, paying $750 on the account. (Credit Accounts
Payable)
28 Performed delivery services on account, $5,750.
29 Paid office rent, $2,550, for the month of December.
30
Paid $460 on the account.
31 Cash dividends of $3,450 were paid to stockholders.
Assume that Murphy Delivery Service started its operations in December 2020 and the
beginning balance in all accounts is zero.
Cash
Accounts Receivable
Office Supplies
Prepaid Insurance
Truck
Accumulated Depreciation-Truck
Accounts Payable
Salaries Payable
Unearned Revenue
Common Stock
Retained Earnings
Dividends
Service Revenue
Salaries Expense
Depreciation Expense-Truck
Insurance Expense
Fuel Expense
Rent Expense
Supplies Expense
6. Journalize the closing entries, and post to the T-accounts (using the accounts we
covered in class).
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