oo etisalat 8:17 PM 90% BE210 TMA Summer Semest... Part (B) Accounting Cycle Com

Question

oo etisalat 8:17 PM 90% BE210 TMA Summer Semest... Part (B) Accounting Cycle Comprehensive Problem 75 marks in total Gulf Delivery Service, Inc. completed the following transactions during January, 2018: Shareholders invested in the business $25,000 cash and a delivery truck valued at $35,000 in exchange for common stock. Purchased supplies for $1,000 cash. e Paid $2,400 for a one-year insurance policy, effective Januaryl a Performed delivery services for a customer and received $2,500 cash. Completed a large delivery job for a customer on account for $8,000 t Paid $6,000 for employee salaries. Performed delivery services for customers and received $55,000 cash. Collected $4,000 in advance for delivery service to be performed later Collected $3,000 cash from a customer on account. Purchased fuel for the truck, paying $1,500 with a company credit card (Credit accounts payable). Performed delivery services on account, $4,500. Paid office rent $2,500. mPaid $500 for accounts payable. Paid cash dividends of S10,000. Requirements ?. Record each transaction in the journal. Key each transaction by its letter (Explanations are not required). 14 marks 2 Post the transactions that you recorded in requirement 1 to the ledger accounts using T-accounts. The ledger for Gulf Delivery Service contains the following accounts: Service revenue Cash Accounts receivable Supplies Prepaid insurance Delivery truck Accumulated depreciation Accounts payable Salaries payable Salaries expense Depreciation expense Insurance expense Fuel expense rent expense supplies expense

Explanation / Answer

1 JOURNALENTRY Account Title Debit Credit Cash $25,000 Delivery truck $35,000 Common Stock $60,000 Supplies $1,000 Cash $1,000 Prepaid Insurance $2,400 Cash $2,400 Cash $2,500 Service revenue $2,500 Accounts Receivable $8,000 Service revenue $8,000 Salaries expense $6,000 Cash $6,000 Cash $55,000 Service Revenue $55,000 Cash $4,000 Unearned Service Revenue $4,000 Cash $3,000 Accounts receivable $3,000 Fuel expense $1,500 Accounts payable $1,500 Accounts receivable $4,500 Service Revenue $4,500 Rent expense $2,500 Cash $2,500 Accounts payable $500 Cash $500 Dividends $10,000 Cash $10,000

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