> Comprehensive Problem 1 for Chapters 1-4 Matthews Delivery Service completed t

Question

> Comprehensive Problem 1 for Chapters 1-4 Matthews Delivery Service completed the following transactions during December 2014 Dec. 1 Matthews Delivery Service began operations by receiving $6,000 cash and a truck with a fair value of $20,000 from Robert Matthews. The business issued Matthews shares of common stock in exchange for this contribution. Paid $600 cash for a 6-month insurance policy. The policy begins December 1 1 4 Paid $300 cash for office supplies 12 Performed delivery services for a customer and received $800 cash. 15 Completed a large delivery job, billed the customer, $1,500, and received a promise to collect the $1,500 within one week. 18 Paid employee salary,$700 20 Received $12,000 cash for performing delivery services. 22 Collected $600 in advance for delivery service to be performed later 25 Collected $1,500 cash from customer on account. 27 Purchased fuel for the truck, paying $200 with a company credit card (Credit Accounts Payable) 28 Performed delivery services on account, $900. 29 Paid office rent, $600, for the month of December. 30 Paid $200 on account. 31 Cash dividends of $2,100 were paid to stockholders.

Explanation / Answer

Solution.

1.

Journal Entries

2.

3.

Unadjusted Trial Balance of 31 Dec 2014

5. Journal Entries for adjustments as on 31 Dec

Entries in accounts

6. Adjusted Trial Balance

Date Account Debit ($) Credit ($) Dec 1 Cash Dr. 6000 Truck Dr. 20000 To Common Stock 26000 Dec 1 Prepaid Insurance Dr. 600 To Cash 600 Dec 4 Office Supplies Dr. 300 To Cash 300 Dec 12 Cash Dr. 800 To Service Revenue 800 Dec 15 Accounts Receivable Dr. 1500 To Service Revenue 1500 Dec 18 Salaries Expense Dr. 700 To Cash 700 Dec 20 Cash Dr. 12000 To Service Revenue 12000 Dec 22 Cash Dr. 600 To Unearned Revenue 600 Dec 25 Cash Dr. 1500 To Accounts Receivable 1500 Dec 27 Fuel Expense Dr. 200 To Credit Accounts Payable 200 Dec 28 Accounts Receivable Dr. 900 To Service Revenue 900 Dec 29 Rent expense Dr. 600 To cash 600 Dec 30 Credit Accounts Payable Dr. 200 To Cash 200 Dec 31 Dividends Dr. 2100 To Cash 2100

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