Answer:
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