Chapter 4, Problem 1.8CP

COMPREHENSIVE PROBLEMS

Comprehensive Problem 1 for Chapters 1 − 4

Murphy Delivery Service completed the following transactions during December 2018:

Dec. 1	Murphy Delivery Service began operations by receiving $13,000 cash and a truck with a fair value of $9,000 from Russ Murphy. The business issued Murphy capital in exchange for this contribution.
1	Paid $600 cash for a six-month insurance policy. The policy begins December 1.
4	Paid $750 cash foe office supplies.
12	Performed delivery services for a customer and received $2,200 cash.
15	Completed a large delivery job, billed the customer, $3,300, and received a promise to collect the $3,300 within one week.
18	Paid employee salary, $800.
20	Received $7,000 cash for performing delivery services.
22	Collected $2,200 in advance for delivery service to be performed later.
25	Collected $3,300 cash from customer on account.
27	Purchased fuel for the truck, paying $150 on account. (Credit Accounts Payable)
28	Performed delivery services on account, $1,400.
29	Paid office rent, $1,400, for the month of December.
30	Paid $150 on account.
31	Murphy withdrew cash of $2,500.

8. Journalize the closing entries, and post to the T-accounts.