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 $6,000 cash and a truck valued at $11,000. The business issued common stock to aquire 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 $1,500, and received apromise to collect the $1,500 within one week.
f. Paid employee salary, $700.
g. Received $12,000 cash for performing delivery services.
h. Collected $600 in advance for delivery service to be performed later.
i. Collected $1,500 cash from a customer on account.
j. Purchased fuel for the truck, paying $200 with a company credit card. (CreditAccounts 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 $2,100.

Required:

a. Record each transaction in the journal.
b. Post the transactions that you recorded in Requirement 1 in the T-accounts.
c. Write the trial balance for the month ended January 31, 2012.

a. Matthews Delivery Service, Inc., began operations by receiving $6,000 cash and a truck valued at $11,000. The business issued common stock to acquire these assets.

Dr Cash 6,000

Dr Vehicles 11,000

    Cr Common stock 17,000

b. Paid $300 cash for supplies.

Dr Supplies 300

    Cr Cash 300

c. Prepaid insurance, $700.

Dr Prepaid insurance 700

    Cr Cash 700

d. Performed delivery services for a customer and received $800 cash.

Dr Cash 800

    Cr Service revenue 800

e. Completed a large delivery job, billed the customer $1,500, and received a promise to collect the $1,500 within one week.

Dr Accounts receivable 1,500

    Cr Service revenue 1,500

f. Paid employee salary, $700.

Dr Wages expense 700

    Cr Cash 700

g. Received $12,000 cash for performing delivery services.

Dr Cash 12,000

    Cr Service revenue 12,000

h. Collected $600 in advance for delivery service to be performed later.

Dr Cash 600

    Cr Unearned revenue 600

i. Collected $1,500 cash from a customer on account.

Dr Cash 1,500

    Cr Accounts receivable 1,500

j. Purchased fuel for the truck, paying $200 with a company credit card. (CreditAccounts payable)

Dr Fuel expense 200

    Cr Accounts payable 200

k. Performed delivery services on account, $900.

Dr Accounts receivable 900

    Cr Service revenue 900

l.Paid office rent, $600. This rent is not paid in advance.

Dr Rent expense 600

    Cr Cash 600

m. Paid $200 on account.

Dr Accounts payable 200

    Cr Cash 200

n. Paid cash dividends of $2,100.

Dr Dividends 2,100

    Cr Cash 2,100

Cash

Debit              Credit

6,000

                        300

                        700

800

                         700

12,000

600

1,500

                          600

                          200

                          2,100  

16,300

Vehicles

Debit              Credit

11,000

Common stock

Debit              Credit

                      17,000

Supplies

Debit              Credit

300

Prepaid insurance

Debit              Credit

700

Service revenue

Debit              Credit

                      800

                      1,500

                      12,000

                      900      

                      15,200

Accounts receivable

Debit              Credit

1,500

                      1,500

900                            

900

Wages expense

Debit              Credit

700

Unearned revenue

Debit              Credit

                      600

Accounts payable

Debit              Credit

                      200

200                        

0                     0

Fuel expense

Debit              Credit

200

Rent expense

Debit              Credit

600

Dividends

Debit              Credit

2,100

Trial balance

                                           debit         credit

Cash                                 16,300

Vehicles                           11,000

Accounts receivable          900

Supplies                              300

Prepaid insurance              700

Unearned revenue                                600

Common stock                                    17,000

Service revenue                                 15,200

Wages expense                 700

Fuel expense                     200

Rent expense                    600

Dividends                        2,100                    

Totals                           $32,800        $32,800