Chapter 4, Problem 2.5CP

Comprehensive Problem 2 for Chapters 1 − 4

This comprehensive problem is a continuation of Comprehensive Problem 1. Murphy Delivery Service has completed closing entries and the accounting cycle for 2018. The business is now ready to record January 2019 transactions.

Jan. 3	Collected $200 cash from customer on account.
5	Purchased office supplies on account, $1000.
12	Performed delivery services for a customer and received $3000 cash.
15	Paid employee salary, including the amount owed on December 31, $4,100.
18	Performed delivery services on account, $ 1,350.
20	Paid $300 on account.
24	Purchased fuel for the truck, paying $200 cash.
27	Completed the remaining work due for Unearned Revenue.
28	Paid office rent, $2,200, for the month of January.
30	Collected $3,000 in advance for delivery service to be performed later.
31	Murphy withdrew cash of $1,500.

5. Journalize the adjusting entries using the following adjustment data and also by reviewing the journal entries prepared in Requirement 1. Post adjusting entries to the T-accounts.

Adjustment data:

1. Office Supplies on hand, $600.
2. Accrued Service Revenue, $1,800.
3. Accrued Salaries Expense, $500.
4. Prepaid Insurance for the month has expired.
5. Depreciation was recorded on the truck for the month.