Mass Delivery Service completed the following transactions during December 2016: 1. Mass Delivery Service began operations by receiving $3,000 cash and a truck with a fair value of $17,000 from Radley Mass. The business issued Mass shares of common stock in exchange for this contribution Dec. 1.
2. Paid $600 cash for a six-month insurance policy. The policy begins December 1.
3. Paid $750 cash for office supplies.
4. Performed delivery services for a customer and received $2,300 cash.
5. Completed a large delivery job, billed the customer, $2,900, and received a promise to collect the $2,900 within one week.
6. Paid employee salary, $900.
7. Received $10,000 cash for performing delivery services.
8. Collected $1,900 in advance for delivery service to be performed later.
9. Collected $2,900 cash from customer on account.
10. Purchased fuel for the truck, paying $150 with on account.
11. Performed delivery services on account 51 000.
12. Paid office rent, $1,400, for the month of December 30 .
13. Paid $150 on account.
14. Murphy withdrew cash of $2,500.
Requirement
1. Record each transaction in the journal. Explanations are not required.
Cash Murphy, Withdrawals
Accounts Receivable Income Summary
Office Supplies Service Revenue
Prepaid Insurance Salaries Expense
Truck Depreciation Expense- Truck
Accumulated Depreciation-Truck Insurance Expense
Accounts Payable Fuel Expense
Salaries Payable Rent Expense
Unearned Revenue Supplies Expense
Murphy, Capital
2. Post the transactions in the T-accounts.
3. Prepare an unadjusted trial balance as of December 31, 2018.
4. Prepare a worksheet as of December 31, 2018 (optional).
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.