PARTI:The following transactions occurred for Murphy Delivery Service during December 2020:Dec. 1 Murphy Delivery Service began operations by receiving $22,000 cash and a truckwith a fair value of $15,000 from Russ Murphy. The business issued Murphyshares of common stock in exchange for this contribution.1Paid $4,080 cash for a one-year insurance policy. The policy begins on December1.41215Paid $1,400 cash for office supplies.Performed delivery services for a customer and received $4,800 cash.Completed a large delivery job, billed the customer, $11,400, and received apromise to collect the $11,400 within one week18 Paid employee salary, $3,600.20Received $7,850 cash for performing delivery services.22Collected $6,400 in advance for delivery service to be performed later.25Collected $11,400 cash from a customer on account.27Purchased fuel for the truck, paying $750 on the account. (Credit AccountsPayable)Performed delivery services on account, $5,750.Paid office rent, $2,550, for the month of December.Paid $460 on the account.28293031 Cash dividends of $3,450 were paid to stockholders.Assume that Murphy Delivery Service started its operations in December 2020 and thebeginning balance in all accounts is zero.CashAccounts ReceivableOffice SuppliesPrepaid InsuranceTruckAccumulated Depreciation-TruckAccounts PayableSalaries PayableUnearned RevenueCommon StockRetained EarningsDividendsService RevenueSalaries ExpensePrepare a post-closing trial balance as of December 31, 2020. (Depreciation Expense-TruckInsurance ExpenseFuel ExpenseRent ExpenseSupplies Expense

The primary objective of the post-closing trial balance seems to be to ensure that the lists of…

PARTI: The following transactions occurred for Murphy Delivery Service during December 2020: Dec. 1 Murphy Delivery Service began operations by receiving $22,000 cash and a truck with a fair value of $15,000 from Russ Murphy. The business issued Murphy shares of common stock in exchange for this contribution. 1 Paid $4,080 cash for a one-year insurance policy. The policy begins on December 1. 4 Paid $1,400 cash for office supplies. 12 Performed delivery services for a customer and received $4.800 cash.

PARTI: The following transactions occurred for Murphy Delivery Service during December 2020: Dec. 1 Murphy Delivery Service began operations by receiving $22,000 cash and a truck with a fair value of $15,000 from Russ Murphy. The business issued Murphy shares of common stock in exchange for this contribution. 1 Paid $4,080 cash for a one-year insurance policy. The policy begins on December 1. 4 Paid $1,400 cash for office supplies. 12 Performed delivery services for a customer and received $4.800 cash.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 94PSB

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