Kay's Delivery Service begun operation in 2020 and the owner of the company Karen Taylor has requested the assistance of your group in the preparation of the company's accounts. The company presented the following chart of accounts for use in the recording of its transactions: Cash Service revenue Accounts receivable Salary expense Depreciation expense Supplies Prepaid Insurance Insurance expense Delivery truck Accumulated depreciation Fuel expense Rent expense Accounts payable Supplies expense Salary payable Income summary Unearned service revenue Kay's, Capital Kay's, Drawing During the period January to December 2020 the company completed the following transactions: A. Kay's Delivery Service began operations by receiving $180,000 cash and a truck valued at $250,000. The business gave Kay capital to acquire these assets. B. Paid $19,000 cash for supplies. C. Prepaid insurance, $28,000. D. Performed delivery services for a customer and received $5,500 cash. E. Completed a large delivery job, billed the customer $35,500, and received a promise to collect the $35,500 within three (3) months. F. Paid employees salary, $65,700. G. Received $15,000 cash for performing delivery services. H. Collected $12,000 in advance for delivery service to be performed later. I. Collected $35,500 cash from a customer on account. J. Purchased fuel for the truck, paying $29,800 with a company credit card. (Credit Accounts payable) K. Performed delivery services on account, $4,500. L. Paid office rent, $85,000 for the year. M. Paid $20,800 on account relating to fuel purchased. N. Owner withdrew cash of $15,300. Requirements: 1. Record each transaction in the journal and key each transaction by its letter. Narrations are not required. 2. Post the transaction your recorded in requirement 1 in the T accounts as per the company's accounts as provided. 3. Prepare the unadjusted trail balance for the year ended December 31, 2020, based on the info already presented.
Kay's Delivery Service begun operation in 2020 and the owner of the company Karen Taylor has requested the assistance of your group in the preparation of the company's accounts. The company presented the following chart of accounts for use in the recording of its transactions: Cash Service revenue Accounts receivable Salary expense Depreciation expense Supplies Prepaid Insurance Insurance expense Delivery truck Accumulated depreciation Fuel expense Rent expense Accounts payable Supplies expense Salary payable Income summary Unearned service revenue Kay's, Capital Kay's, Drawing During the period January to December 2020 the company completed the following transactions: A. Kay's Delivery Service began operations by receiving $180,000 cash and a truck valued at $250,000. The business gave Kay capital to acquire these assets. B. Paid $19,000 cash for supplies. C. Prepaid insurance, $28,000. D. Performed delivery services for a customer and received $5,500 cash. E. Completed a large delivery job, billed the customer $35,500, and received a promise to collect the $35,500 within three (3) months. F. Paid employees salary, $65,700. G. Received $15,000 cash for performing delivery services. H. Collected $12,000 in advance for delivery service to be performed later. I. Collected $35,500 cash from a customer on account. J. Purchased fuel for the truck, paying $29,800 with a company credit card. (Credit Accounts payable) K. Performed delivery services on account, $4,500. L. Paid office rent, $85,000 for the year. M. Paid $20,800 on account relating to fuel purchased. N. Owner withdrew cash of $15,300. Requirements: 1. Record each transaction in the journal and key each transaction by its letter. Narrations are not required. 2. Post the transaction your recorded in requirement 1 in the T accounts as per the company's accounts as provided. 3. Prepare the unadjusted trail balance for the year ended December 31, 2020, based on the info already presented.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter3: The General Journal And The General Ledger
Section: Chapter Questions
Problem 4PB: Leanders Landscaping Service maintains the following chart of accounts: The following transactions...
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