Matthews Delivery Service Inc. completed the
following transactions during its first month of operations for January 2012:a. Matthews Delivery Service Inc. began
operations by receiving $6000 cash and a truck valued at $11000. The business
issuedcommon stockto acquire these assets.b. Paid $300 cash for supplies.c. Prepaid insurance $700.d. Performed delivery services for a customer and received $800 cash.e. Completed a large delivery job billed the customer $1500 and received a
promise to collect the $1500 within one week.f. Paid employee salary $700.g. Received $12000 cash for performing delivery services.h. Collected $600 in advance for delivery service to be performed later.i. Collected $1500 cash from a customer on account.j. Purchased fuel for the truck paying $200 with acompany
credit card. (Credit Accounts
payable)k. Performed delivery services on account $900.l. Paid office rent $600. This rent is not paid in advance.m. Paid $200 on account.n. Paid cash dividends of $2100.Requirements1. Record each transaction in the journal. Key each transaction by its letter.
Explanations are not required.2. Post the transactions that you recorded in Requirement 1 in the T-accounts.CashAccounts receivableSuppliesPrepaid insuranceDelivery truckAccumulated depreciationAccounts payableSalary payableUnearned service revenueCommon stockRetained earningsDividendsIncome summaryService revenueSalary expenseDepreciation expenseInsurance expenseFuel expenseRent expenseSupplies expense3. Enter the trial balance in the worksheet for the month ended January 31
2012.Complete the worksheet using the adjustment data given at January 31.a. Accrued salary expense $700.b. Depreciation expense $60.c. Prepaid insurance expired $250.d. Supplies on hand $200.e. Unearned service revenue earned during January $500.4. Prepare Matthews Delivery Service?s income statement and statement of
retained earnings for the month ended January 31 2012 and the classified
balance sheet on that date. On the income statement list expenses in
decreasing order by amount?that is the largest expense first the smallest
expense last.5. Journalize and post the adjusting entries beginning with a.6. Journalize and post the closing entries.7. Prepare a post-closing trial balance at January 31 2012.