Concept explainers
Magness Delivery Service completed the f<blowing tranuttions during De< ;mbei 2016:
Dec. 1 Magness Dp!' i, >ei ' < "' 'lions by receiving $10,000 cash and a truck with a fair value of $20,000 horn Robert Mugness The business gave Magness capital in exchange for this contribution
1 Paid $ 1,000 cash for a tour-month insurance policy The policy begins December 1 4 Paid $500 cash for office supplies.
12 Performed delivery services for a customer and received $2,000 cash
15 Completed a large delivery job, billed the customer, $2,500, and received a promise to collect the $2,500 within one week.
18 Paid employee salary, $1,000,
20 Received $15,000 cash for performing delivery services.
22 Collected $800 in advance for delivery service to be performed later.
25 Collected $2,500 cash from customer on account.
27 Purchased fuel for the truck, paying $300 on account (Credit Accounts Payable)
28 Performed delivery services on account, $700.
29 Paid office rent, $1,600, for the month of December.
30 Paid $300 on account.
31 Magness withdrew cash of $3,000.
Requirements
- jRecord each transaction in the journal using the following chart of accounts. Explanations are not required.
Adjustment data:
- Accrued Salaries Expense, $ 1,000.
Depreciation was recorded on the truck using the straight-line me' ul. Asstn^ a useful life of five years and a salvage value ol $5,000.- Prepaid Insurance for the month has expired.
- Office Supplies on hand, $100.
- Unearned Revenue earned during the month. $300.
- Accrued Service Revenue, $650.
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