ACCT 1110 Accounting Cycle Review Problem

Your Name:

PU-S PtA..

Complete the Accounting Cycle Review Problem found below and on the next page, on
the attached accounting cycle work papers. Please do them by hand (legibly). If I cannot
read your writing, I cannot grade the assignment.
Please be sure and put your name on the assignment prior to turning it in.
Good luck!

Requirements
1. Record the transactions in the journal using the chart of accounts provided on the next page.
Journal entries should be complete and in proper format.
2. Post the transactions to the ledger (the T-accounts).
3. Prepare an unadjusted trial balance as of December 31, 2016.
4. Journalize the adjusting entries using the adjustment data given and also by reviewing the journal
entries prepared in Requirement 1 and the unadjusted trial balance prepared in Requirement 3.
Post adjusting entries to the ledger.
5. Prepare an adjusted trial balance as of December 31, 2016.
Prepare the income statement and the statement of owner's equity for the month ended
31, 2016 and the classified balance sheet on that date.
7. Journalize the closing entries and post them to the
8. Prepare a post-closing trial balance as of December 31, 2016.

Milton Delivery Service

Transactions
Date

Transaction

1-Dec

1-Dec

Milton Delivery service began operations by receiving $9,000 cash and a truck with a
fair value of $16,000 from Ripley Milton. The business gave Milton capital in
exchange for this contribution.
Paid $1,200 cash for a twelve-month insurance policy. The policy begins December 1.

4-Dec

Paid $450 cash for office supplies.

12-Dec

Performed delivery services for a customer and received $1,500 cash.

15-Dec
18-Dec

Completed a large delivery job, billed the customer, $3,100, and received a promise to
collect the $3,100 within one week.
" $1,590
Paid employee salary,

20-Dec

Received $6,000 cash for performing delivery services.

22-Dec

Collected $2,200 in advance for delivery service to be performed later.

25-Dec

Collected $3,100 cash from a customer on account.

-J.27-Dec
28-Dec
,.._29-Dec

Purchased fuel for the truck on account $150.._

Performed delivery services on account, $1AOO.

fBid office rent, $1,900, for the month of December.

30-Dec

Paid $150 on account.

31-Dec

Milton withdrew cash of $2,200.

Adjustment Data
;/?_a. Accrued salary expense, $1,500.
b. Depreciation is recorded using the straight-line method. Assume useful life of 5 years and $0
salvage value.
c. Prepaid insurance for the month has expired.
d. Office supplies on hand, $200.
e. Unearned revenue earned during the month, $1,000.
f. Accrued Service Revenue, $1,150.

Chart of Accounts
Cash
Accounts Receivable
Office Supplies
Prepaid Insurance
Truck
Accumulated Depreciation- Truck
Accounts Payable

Salaries Payable
Unearned Revenue
Milton, Capital
Milton, Withdrawals
Income Summary
Service Revenue
Salaries Expense

Depreciation Expense -Truck

Insurance Expense
Fuel Expense
Rent Expense
Supplies Expense

GENERAL JOURNAL
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