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. Dec. 1: Paid $4,080 cash for a one-year insurance policy. The policy begins on December 1. Dec. 4: Paid $1,400 cash for office supplies Dec. 12: Performed delivery services for a customer and received $4,800 cash. Dec. 15: Completed a large delivery job, billed the customer, $11,400, and received a promise to collect the $11,400 within one week. Dec. 18: Paid employee salary, $3,600. Dec. 20: Received $7,850 cash for performing delivery services. Dec. 22: Collected $6,400 in advance for delivery service to be performed later. Dec. 25: Collected $11,400 cash from a customer on account. Dec. 27: Purchased fuel for the truck, paying $750 on the account. (Credit Accounts Payable) Dec. 28: Performed delivery services on account, $5,750. Dec. 29: Paid office rent, $2,550, for the month of December. Dec. 30: Paid $460 on the account. Dec. 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. Journalize the closing entries, and post to the T-accounts. EDIT: I added Adjusting Entries
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.
Dec. 1: Paid $4,080 cash for a one-year insurance policy. The policy begins on December 1.
Dec. 4: Paid $1,400 cash for office supplies
Dec. 12: Performed delivery services for a customer and received $4,800 cash.
Dec. 15: Completed a large delivery job, billed the customer, $11,400, and received a promise to collect the $11,400 within one week.
Dec. 18: Paid employee salary, $3,600.
Dec. 20: Received $7,850 cash for performing delivery services.
Dec. 22: Collected $6,400 in advance for delivery service to be performed later.
Dec. 25: Collected $11,400 cash from a customer on account.
Dec. 27: Purchased fuel for the truck, paying $750 on the account. (Credit Accounts Payable)
Dec. 28: Performed delivery services on account, $5,750.
Dec. 29: Paid office rent, $2,550, for the month of December.
Dec. 30: Paid $460 on the account.
Dec. 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.
Journalize the closing entries, and post to the T-accounts.
EDIT: I added
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