: Cindy Holloway Instructor: Javaid Majid Assignment: Comprehensive Problem 2 12S Course: ACCT 1110. Fall 2014 ‘Time: 7:41 PM Book: Nobles/Mattisor/ Matsumura: Horngren's Accounting, The Financial Chapters, 10 Matthews Delivery Service completed the Adjustment data: following transactions during December 2014: (@) (Click the icon to view the transactions.) (@) (Click the icon to view the adjustment data.) Read the requirements, Requirement 1. Record each transaction in the journal. Explanations are not required. (Record deb Dec. 1: Matthews Delivery Service began operations by receiving $6,000 cash and a truck valued at Robert Matthews. The business gave Matthews capital in exchange for this contribution. Date Accounts Debit Credit Dec. 4 Cash 6,000 Truck 20,000 Matthews, Capital 26,000 Dee. 1: Paid $600 cash for a 6-month insurance policy. The policy begins December 1. Date Accounts. Debit Credit Dec. 1 Prepaid Insurance 600 Cash 600 Dee. 4: Paid $300 cash for office supplies. Date Accounts | Debit || Creait Dec. 4 Office Supplies 300 Cash 300 Dee. 12: Performed delivery services for a customer and received $800 cash. Date Accounts Debit Credit Dec. 12 Cash 800 Service Revenue 800 Dec. 15: Completed a large delivery job, billed the customer, $1,500, and received a promise to coll: Page |Studer : Cindy Holloway Instructor: Javaid Majid Assignment: Comprehensive Problem Date: 12/5/14 Course: ACCT 1110 Fall 2014 ‘Time: 7:41 PM Book: Nobles/Mattson/Matsumura: Homgren's Accounting, The Financial Chapters, Ide 1 (cont.) Date Accounts Debit || Credit Deo. 15 Accounts Receivable 4,500 Service Revenue 4,500 Dec. 18: Paid employee salary, $700. Date Accounts Debit Credit Dec. 18 Salaries Expense 700 Cash 700 Dec. 20: Received $12,000 cash for performing delivery services, Date Accounts, Debit Credit Dec. 20 Cash 42,000 Service Revenue 42,000 Dec. 22: Collected $600 in advance for delivery service to be performed later. Date Accounts Debit Credit Dec. 22 Cash 600 ‘Unearned Revenue 600 Dec. 25: Collected $1,500 cash from customer on account. Date Accounts, Debit Credit Dec. 25 Cash 1,500 ‘Accounts Receivable 41,500 Page 2Studer : Cindy Holloway Date: 12/5/14 ‘Time: 7:41 PM 1. (cont) Instructor: Javaid Majid Course: ACCT 1110. Fall 2014 Book: Nobles/Mattisor/ Matsumura: Horngren's Accounting, The Financial Chapters, 10 Assignment: Comprehensive Problem Dec. 27: Purchased fuel for the truck, paying $200 with a company credit card. (Credit Accounts Pa Date Accounts Debit Credit Dec. 27 Fuel Expense 200 Accounts Payable 200 Dec. 28: Performed delivery services on account, $900. Date Accounts: Debit Credit Dec. 28 Accounts Receivable 900 Service Revenue 200 Dec. 29: Paid office rent, $600, for the month of December. Date Accounts Debit Credit Dec. 29 Rent Expense 600 Cash 600 Dec. 30: Paid $200 on account Date Accounts, Debit Credit Dec. 30 ‘Accounts Payable 200 Cash 200 Dec. 31: Owner withdrew cash of $2,100. Date Accounts Debit Credit Deo. 31 Matthews, Withdrawals 2.100 Cash 2,100 Page 3Instructor: Javaid Majid Assignment: Comprehensive Problem Course: ACCT 1110. Fall 2014 Book: Nobles/Mattisor/ Matsumura: Horngren's Accounting, The Financial Chapters, 10 (cont) Post the transactions to the T-accounts. Use the transaction dates as posting references. Use a "Ba ‘ending balance of each account. For any accounts with a zero balance, select the "Bal." posting refe normal side of the account. Review the journal entries you prepared above. Cash Accounts Payable Dec.i 6,000] 600 Dec.1 Dec. 30 200] 200 Dec. 27 Dec.12 800/300 Dec. 4 Dec.20 12,000] 700 Dec. 18 0” Bal, Dec.22 600] 600 Dec. 29 Dec.25 1,500] 200 Dec. 30 Salaries Payable 2,100 Dec. 31 Bal 18,400 0 Bal. Accounts Receivable Unearned Revenue Dec. 15 1,00] 1,800 Dec. 25 600 Dec. 22 Dec. 18 Dec.28 900 Bal 900 600 Bal. Bal. Office Supplies tthews, Capital ' Dec. 4 300 26,000 Dee. 1 Bal 300 26,000 Bal. Bal. Prepaid Insurance Matthews, Withdrawals Dec. 4 600 Dec.31 2,100 Bal 600 Bal 2,100 Bal. Truck Income Summary Dec. 20,000 Dec. 27 Bal 20,000 Bal. Accumulated Page 4(cont) indy Holloway Instructor: Javaid Majid 4 Course: ACCT 1110. Fall 2014 PM Book: Nobles/Mattisor/ Matsumura: Horngren's Accounting, The Financial Chapters, 10 0 Bal. Assignment: Comprehensive Problem Dec. 29 Bal Bal Requirement 3. Propare an unadjusted trial balance as of December 31, 2014. (Exclude any acco trial balance.) Review the T-accounts you prepared in Requirement Matthews Delivery Service Unadjusted Trial Balance December 31, 2014 Balance Account Title Debit Credit Cash $ 16.400 Accounts Receivable 200 Office Suppiies 300 Prepaid Insurance 600 Truck 20,000 Uneamed Revenue 600 Matthews, Capital 26,000 Matthews, Withdrawals 2,100 Service Revenue 15,200 Salaries Expense 700 Fuel Expense 200 Rent Expense 600 Total $41,800 $41,800 Requirement 4. Journalize the adjusting entries using the adjustment data. Post adjusting entries te Begin by preparing the adjusting entries. (Record debits first, then credits. Explanations are not requ a. Accrued Salaries Expense, $700. Page $‘Student: Cindy Holloway Instructor: Javaid Majid Date: 12/5/14 Course: ACCT 1110. Fall 2014 ‘Time: 7:41 PM Book: Nobles/Mattisor/ Matsumura: Horngren's Accounting, The Financial Chapters, 10 lL Date Accounts (cont) Dec. 31 Salaries Expense Adj. (a) Salaries Payable Debit 700 Assignment: Comprehensive Problem Credit 700 b. Depreciation was recorded on the truck using the straight-line method. Assume a useful ite of 5 y 35,000, Date Accounts Debit | Credit Dec. 31 Depreciation Expense 250 Adj (0) ‘Accumulated Depreciation 250 «. Prepaid insurance for the month has expired Date Accounts Debit | Credit Dec. 31 Insurance Expense 100 Adi (0) Prepaid Insurance 100 4. Office Supplies on hand, $200. Date Accounts Debit Credit Dec. 31 ‘Supplies Expense 100 Adi (8) Office Supplies 100 e. Unearned Revenue eamed during the month, $500. Date Accounts Debit Credit Dec. 31 ‘Uneamed Revenue 500 Adi (0) Service Revenue 500 Page 6(cont) indy Holloway Instructor: Javaid Majid Assignment: Comprehensive Problem 4 Course: ACCT 1110. Fall 2014 PM Book: Nobles/Mattisor/ Matsumura: Horngren's Accounting, The Financial Chapters, 10 f. Accrued Service Revenue, $450. Date Accounts. | Debit Credit Dec. 31 ‘Accounts Receivable 450 Adi.) Service Revenue 450 Post the adjusting entries to the T-accounts. The unadjusted balances of the accounts ("Bal.") have adjustment and corresponding letters as posting references—"Adj, (a)", "Adj. (b)", etc. Use a "Bal." ‘of each T-account to show the adjusted balance of each account. For any accounts with a zero bala reference and enter a "0" on the normal side of the account. Review the adjusting journal entries you prepared above. Cash Accounts Payable Bal. 16,400 0 Bal. Bal 16,400 0 Bal, Salaries Payable 0 Bal. 700_Adj. (a) 700 Bal. Accounts Receivable Unearned Revenue Bal 900 600 Bal. Bal. Adj. (f) 450 Adj. (e) 500 Adi. (a) Bal 4,350 100 Bal Bal. Office Supplies Matthews, Capital ' Bal 300 26,000 Bal. Bal. 100 _Adj. (<) Adj. (b) Bal 200 26,000 Bal. Bal. Prepaid Insurance Matthews, Withdrawals Bal 600 Bal 2,100 Bal. 100 Adj. (c) Adj. (c) Page 7indy Holloway Instructor: Javaid Majid Assignment: Comprehensive Problem 4 Course: ACCT 1110. Fall 2014 PM Book: Nobles/Mattisor/ Matsumura: Horngren's Accounting, The Financial Chapters, 10 lL Bal. 500 Bal. 2,100 Bal (cont) Truck Income Summary Bal 20,000 Bal. Bal 20,000 Bal Accumulated Depreciation 0 Bal Bal 250_Adj.(b) 260 Bal Bal. Bal. Adj. (d) Bal. Requirement 5. Prepare an adjusted tral balance as of December 31, 2014. (Exclude any zero bal trial balance.) Review the T-accounts you prepared in Requirement 4 Matthews Delivery Service Adjusted Trial Balance December 31, 2014 Balance Account Title Debit Credit Cash $ 16,400 Accounts Receivable 1,350 Office Supplies 200 Prepaid Insurance 500 Truck 20,000 ‘Accumulated Depreciation $ 250 Salaries Payable 700 Uneamed Revenue 100 Matthews, Capital 26,000 Page 82 12S (cont) indy Holloway Instructor: Javaid Majid Assignment: Comprehensive Problem Course: ACCT 1110. Fall 2014 ‘Time: 7:41 PM Book: Nobles/Mattisor/ Matsumura: Horngren's Accounting, The Financial Chapters, 10 Matthews, Withdrawals 2,100 Service Revenue 16,150 Salaries Expense 1,400 Depreciation Expense 250 Insurance Expense 100 Fuel Expense 200 Rent Expense 600 Supplies Expense 400 Total $43,200 $ 43,200 Requirement 6. Prepare Matthews Delivery Service's income statement and statement of owner's ¢ December 31, 2014, and the classified balance sheet on that date. On the income statement, list ex amount—that is, the largest expense first, the smallest expense last Begin by preparing the income statement. List expenses in decreasing order by amount—that is, the smallest expense last. Review the Adjusted Trial Balance completed in Requirement § Matthews Delivery Service Income Statement ‘Month Ended December 31, 2014 Revenues: Service Revenue $16,150 Expenses: Salaries Expense $ 4,400 Rent Expense 600 Depreciation Expense 250 Fuel Expense 200 Insurance Expense 100 ‘Supplies Expense 4100 Total Expenses 2,650 Net income (Loss) $13,500 Prepare the statement of owner's equity. Enter any increases in capital prior to the subtotal and any subtotal. (Enter a °0" for any zero balances. Use a minus sign or parentheses to show a decrease ir Review the Adjusted Trial Balance completed in Requirement § Matthews Delivery Service Page 9Studer lL (cont) indy Holloway Instructor: Javaid Majid 4 Course: ACCT 1110. Fall 2014 Chapters, 10 Statement of Owner's Equity Month Ended December 31, 2014 Matthews, Capital, December 1, 2014 ‘Owner contribution Net income for the month (Owner withdrawal Matthews, Capital, December 31, 2014 PM Book: Nobles/Mattisor/ Matsumura: Horngren's Accounting, The Financial Assignment: Comprehensive Problem $ 0 26,000 43,500 $ 39,500 (2,100) $37,400 Prepare Matthews Delivery Service's classified balance sheet on December 31, 2014. (Exclude any balance sheet.) Review the Adjusted Trial Balance completed in Requirement § Matthews Delivery Service Balance Sheet December 31, 2014 Assets Current Assets: Cash $ 16,400 Accounts Receivable 41,350 Office Supplies 200 Prepaid Insurance 500 Total Current Assets $ 18,450 Plant Assets: Truck 20,000 Less: Accumulated Depreciation (250) Total Plant Assets. 19,750 Total Assets $38,200 Current Liabilities: Salaries Payable $ 700 Uneamed Revenue 400 800, Total Liabilities ‘Owner's Equity Page 10‘Student: Cindy Holloway Instructor: Javaid Majid Date: 12/5/14 Course: ACCT 1110. Fall 2014 ‘Time: 7:41 PM Book: Nobles/Mattisor/ Matsumura: Horngren's Accounting, The Financial Chapters, 10 ‘ Matthews, Capital, December 31, 2014 (cont) Total Liabilties and Owner's Equity Requirement 7. Journalize the closing entries and post to the T-accounts. $38,200 Assignment: Comprehensive Problem Begin by journalizing the closing entries. (Record debits first, then credits. Explanations are not req. Start by closing revenues. Review the Adjusted Trial Balance completed in Requirement 5 Date ‘Accounts Debit | Dec. 31 Service Revenue 16,150 | Clos. (1) Income Summary Ciose expenses for the period. Review the Adjusted Trial Balance completed in Requirement § Date ‘Accounts Debit | Dec. 31 Income Summary 2,650 | Clos. (2) Salaries Expense Depreciation Expense Insurance Expense Fuel Expense Rent Expense Supplies Expense Close Income Summary. Review the Adjusted Trial Balance completed in Requirement Date Accounts Debit Dec. 31 Income Summary 13,500 Clos. (3) Matthews, Capital Close withdrawals. Page 11lL (cont) indy Holloway Instructor: Javaid Majid Assignment: Comprehensive Problem 4 Course: ACCT 1110. Fall 2014 PM Book: Nobles/Mattisor/ Matsumura: Horngren's Accounting, The Financial Chapters, 10 Review the Adjusted Trial Balance completed in Requirement § Date Accounts Debit Dec. 31 Matthews, Capital 2,100 Clos. (4) Matthews, With¢rawals Post the closing entries to the T-accounts. Use "Clos." and the corresponding number as shown int references—'Clos.(1)", "Clos.(2)", etc. The adjusted balance of each account has been entered for" the accounts and then calculate the post-closing balance ("Bal.”) of each account (including those tr accaunts with a zero balance after closing, enter a "0" on the normal side of the account. For Incom: the balance ("Bal.") before posting the entry to close out the account. Post the entry to close Incame line as you entered the balance prior to closing (the second line) and then show the post-closing bal line of the account. Review the closing journal entries you prepared above. Gash Accounts Payable Bal 16,400 0 Bal Cios.(1) Bal 16,400 : 0 Bal Payable 700_Bal 700 Bal Accounts Receivable Unearned Revenue Bal 1350 00_ Bal Bal Bal 1,350 100. Bal Bal Office Supplies Matthews, Capital 1 Bal 200 Bal Bal Bal 200 Clos(4) 2,100 Clos(3)_ Bal Bal, Prepaid Insurance Matthews, Withdrawals. Bal 500 Bal 2,100 | 2100 Clos(4) Bal Bal 500 Bal 0 Bal Truck Income Summary Page 12indy Holloway Instructor: Javaid Majid Assignment: Comprehensive Problem 4 Course: ACCT 1110. Fall 2014 PM Book: Nobles/Mattson/ Matsumura: Homgren's Accounting, The Financial Chapters, 10¢ i‘ Bal___20,000 Cos 2650] 16,150 Cles(i)_ Bal ona Bal. 20,000 Clos.(3) 13,500 | 13,500 Bal. Bal. 0 Bal. Accumulated Depreciation 250_Bal Bal 250 Bal Bal Bal. Bal Requirement 8. Prepare a post-closing trial balance. (Exclude any permanent accounts with a zero trial balance.) Review the T-accounts you prepared in Requirement 7 Matthews Delivery Service Post-Closing Trial Balance December 31, 2014 Balance Account Title Debit Credit Cash $ 16,400 ‘Accounts Receivable 4,950 Office Supplies 200 Prepaid Insurance 500 Truck 20,000 Accumulated Depreciation s Salaries Payable Uneamed Revenue Matthews, Capital Total $38,450 $ 38,450 More Info. Dec. 1 Matthews Delivery Service began operations by receiving $6,000 cash and a truck val ‘owner, Robert Matthews. The business gave Matthews capital in exchange for tis co Paid $600 cash for a 6-month insurance policy. The policy begins December 4 4 Paid $300 cash for office supplies. Page 13: Cindy Holloway Instructor: Javaid Majid Assignment: Comprehensive Problem 2 12S Course: ACCT 1110. Fall 2014 ‘Time: 7:41 PM Book: Nobles/Mattisor/ Matsumura: Horngren's Accounting, The Financial Chapters, 10 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 tc 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 Account 28 Performed delivery services on account, $900. 29 Paid office rent, $600, for the month of December. 30 Paid $200 on account 31 _ Owner withdrew cash of $2,100. (cont) More Info ‘a. Accrued Salaries Expense, $700. b. Depreciation was recorded on the truck using the straight-line method. Assume a useful life of £ $5,000. c. Prepaid Insurance for the month has expired. 4d. Office Supplies on hand, $200. fe. Uneamed Revenue eamed during the month, $500. f. Accrued Service Revenue, $450. Requirements 4. Record each transaction in the journal. Explanations are not required 2. Post the transactions in the T-accounts using the following chart of accounts. Cash Matthews, Withdrawals Accounts Receivable Income Summary Office Supplies Service Revenue Prepaid Insurance Salaries Expense Truck Depreciation Expense Accumulated Depreciation _ Insurance Expense Accounts Payable Fuel Expense Salaries Payable Rent Expense Unearned Revenue ‘Supplies Expense Matthews, Capital 3. Prepare an unadjusted trial balance as of December 31, 2014 4, Journalize the adjusting entries using the adjustment data. Post adjusting entries to the T-accot 5. Prepare an adjusted trial balance as of December 31, 2014 Page 14: Cindy Holloway Instructor: Javaid Majid Assignment: Comprehensive Problem 2 12S Course: ACCT 1110. Fall 2014 ‘Time: 7:41 PM Book: Nobles/Mattisor/ Matsumura: Horngren's Accounting, The Financial Chapters, 10 6. Prepare Matthews Delivery Service's income statement and statement of owner's equity forthe (cont) 2014, and the classified balance sheet on that date. On the income slatement, list expenses in amount—thats, he largest expense first, the smalest expense last. 7. Joumalize the closing enties and post to the T-accounts 8. Prepare a post-closing trial balance as of December 31, 2014. Page 15(cont) indy Holloway 4 Instructor: Javaid Majid Course: ACCT 1110. Fall 2014 Book: Nobles/Mattisor/ Matsumura: Horngren's Accounting, The Financial Assignment: Comprehensive Problem Page 16 Chapters, 10 Cash Accounts Payable Dec. 1 6000] 600 Dec. 1 200] 200 Dec. 12 800] 300 Dec. 4 nothing] _ nothing Dec.20 12000] 700 Dec. 18 Bal. 0| nothing Dec. 22 600] 600 Dee. 29 Dec.25 1800] 200 Dec. 30 Payable nothing nothing] 2100 Dec. 31 nothing nothing] nothing nothing _nothing| nothing nothing nothing __nothing|_nothing Bal. 16400| nothing nothing nothing ——_nothing| nothing Accounts Receivable Unearned Revenue Dec. 15 1500] 1500 Dec. 25 nothing nothing 600 Dec. 28 900] nothing nothing nothing _nathing|_nothing Bal 900] nothing nothing nothing nothing 600 Office Supplies Matthews, Capital Dec. 4 300] nothing nothing nothing nothing] 26000 nothing _nothing| nothing nothing nothing _nathing|_nothing Bal. 300] nothing nothing nothing nothing] 26000 Prepaid Insurance Matthews, Withdrawal Dec. 4 600] nothing nothing Dec. 31 nothing nothing _nothing| nothing nothing _nothing) nothing Bal 600| nothing nothing Bal. nothing Truck Income Summary Dec. 1 20000] nothing nothing nothing _nothing| nothing nothing Bal. 20000] nothing nothing Accumulated Depreciation nothing nothing] nothing nothing nothing _nothing| nothing nothing nothing nothing] nothing nothing‘Student: Cindy Holloway Date: 12/5/14 ‘Time: 7:41 PM (cont) YOU ANSWERED: Instructor: Javaid Majid Course: ACCT 1110. Fall 2014 Book: Nobles/Mattisor/ Matsumura: Horngren's Accounting, The Financial Chapters, 10 Page 17 Assignment: Comprehensive Problem(cont) Instructor: Javaid Majid Course: ACCT 1110. Fall 2014 Book: Nobles/Mattisor/ Matsumura: Horngren's Accounting, The Financial Assignment: Comprehensive Problem Page 18 Chapters, 106 Gash Accounts Payable Bal 16,400 | nothing nothing nothing _nothing| 0 Bal. 16400| nothing nothing Bal. 0| nothing nothing] 700 nothing] 700 Accounts Receivable Unearned Revenue Bal 1,360 | nothing nothing nothing nothing] 100 Bal 1350| nothing nothing nothing nothing] 100, Office Supplies Matthews, Capital 200 | nothing nothing nothing nothing] 26,000 Bal 200| nothing nothing _Clos.(4)__—2100| _ 13500 nothing nothing] 37400 Propaid Insurance Matthews, Withdrawa Bal 500 | nothing nothing _Bal 2100 [ 2100 Bal. 500| nothing nothing Bal. | nothing Truck Income Summary Bal 20,000 nothing nothing _Clos(2) _—2650| 16150 Bal. 20000| nothing nothing _Cios.(3) 13600] 13500, 0 Accumulated Depreciation nothing nothing] _250_Bal rrothing nothing] 250 Bal