Req.

1 (journal entries)

Journal
Date Accounts and Explanations Post Ref Debit Credit
a. Cash 101 5,000
Delivery truck 141 10,000
Paul Dwyer, capital 301 15,000
Owners investment
b. Supplies 121 200
Cash 101 200
Paid cash for supplies
c. Prepaid insurance 131 600
Cash 101 600
Prepaid insurance
d. Cash 101 700
Service revenue 401 700
Performed service and received cash
e. Accounts receivable 111 2,000
Service revenue 401 2,000
Performed service on account
f. Salary expense 501 800
Cash 101 800
Paid employee salary
g. Cash 101 900
Service revenue 401 900
Performed service and received cash
h. Cash 101 500
Unearned service revenue 221 500
To record revenue that was collected in advance
i. Cash 101 2,000
Accounts receivable 111 2,000
Collected cash on account
j. Fuel expense 531 100
Accounts payable 201 100
Purchased fuel on account
k. Account receivable 111 800
Service revenue 401 800
Performed service on account
l. Rent expense 541 500
Cash 101 500
Paid office rent
m. Accounts payable 201 100
Cash 101 100
Pain on account
n. Paul Dwyer, withdrawals 311 1,900
Cash 101 1,900
Owner withdrawal
Reqs. 2, 5 and 6

Cash Accounts Receivable

a. 5,000 b. 200 e. 2,000 i. 2,000
d. 700 c. 600 k. 800
g. 900 f. 800
h. 500 l. 500
i. 2,000 m. 100
n. 1,900
Bal 5,000 Bal 800

Supplies Prepaid Insurance

b. 200 c. 600

r. 100 q. Adj 150

Bal 100 Bal 450

Delivery Truck Accumulated Depreciation

a. 10,000 p. Adj 50

Bal 10,000 Bal 50

Accounts Payable Salary Payable

m. 100 j. 100 o. Adj 800

Bal 800
 Unearned Service Revenue Paul Dwyer, Capital
h. 500 a. 15,000

15,000 Clo 3 2,300

s. adj 400 Clo 4 1,900
Bal 100 Bal 15,400

Paul Dwyer, Withdrawals Income Summary

n. 1,900 Clo 2 2,500 Clo 1 4,800

Bal 1,900 Clo 4 1,900 CLo3 2,300 Bal 2,300

Service Revenue Salary Expense

d. 700 f. 800
e. 2,000
g. 900
k. 800
s. Adj 400 o. Adj 800

Clo 1 4,800 Bal 4,800 Bal 1,600 Clo 2 1,600

Depreciation Expense Insurance Expense

p. Adj 50 q. Adj 150

Bal 50 Clo 2 50 BaL 150 Clo 2 150

Fuel Expense Rent Expense

j. 100 l. 500

Bal 100 Clo 2 100 Bal 500 Clo 2 500

Supplies Expense
r. Adj 100

Bal 100 Clo 2 100

Req. 3 Dwyer Delivery Service
Accounting Work Sheet
Month Ended January 31, 2011
Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash 5,000 5,000 5,000
Accounts Receivable 800 800 800
Supplies 200 d.100 100 100
Prepaid Insurance 600 c. 150 450 450
Delivery Truck 10,000 10,000 10,000
Accumulated Depreciation b. 50 50 50
Accounts Payable
Salary Payable a. 800 800 800
Unearned service revenue 500 e. 400 100 100
Paul Dwyer, capital 15,000 15,000 15,000
Paul Dwyer, withdrawals 1,900 1,900 1,900
Service Revenue 4,400 e.400 4,800 4,800
Salary Expense 800 a. 800 1,600 1,600
Depreciation Expense b. 50 50 50
Insurance Expense c. 150 150 150
Fuel Expense 100 100 100
Rent Expense 500 500 500
Supplies Expense d. 100 100 100
19,900 19,900 20,750 20,750 2,500 4,800 18,250 15,950
Net Income 2,300 2,300
4,800 4,800 18,250 18,250
Req. 4 Dwyer Delivery Service
Income Statement
Month Ended January 31, 2011
Revenue:
Service revenue $4,800
Expenses:
Salary expense 1600
Depreciation expense 50
Insurance expence 150
Fuel expense 100
Rent expense 500
Supplies expense 100
Total expenses 2,500
Net income $2,300

Dwyer Delivery Service

Statement of Owner's Equity
Month Ended January 31, 2011
Paul Dwyer, capital $15,000
Add:Net Income 2,300
$17,300
Less: Owner withdrawals (1,900)
Paul Dwyer, capital, January 31, 2011 $15,400

Dwyer Delivery Service

Balance Sheet
January 31, 2011
Assets Liabilities
Cash $5,000 Accounts payable
Accounts receivable 800 Salary payable $800
Supplies 100 Unearned service revenue $100
Prepaid insurance 450
total current assets 6,350
Long term assets:
Delevery truck 10,000 Total liabilities $900
Less:Accumulated depreciation 50 Owner's equity
total long term assets 9,950 Paul Dwyer, capital $15,400
total assets $16,300 Total liabilities and owner's equity $16,300
Reqs. 5, 6 Journal
Date Accounts and Explanations PR Debit Credit
Adjusting Entries
(o) Salary expense 501 800
Salary payable 211 800
To accrue salary expense

(p) Depreciation expense 511 50

Accumulated depreciation 151 50
To record depreciation

(q) Insurance expense 521 150

Prepaid insurance 131 150
To accrue insurance expense

( r) Supplies expense 551 100

Supplies 121 100
To record supplies used

(s) Unearned service revenue 221 400

Service revenue 401 400
Torecord revenue that was collected in advance
Req. 6
Journal

Accounts and Explanations Debit Credit

Closing Entries
Jan. 31 Clo 1 Service revenue 4,800
Income summary 4,800

Jan. 31 Clo 2 Income summary 2,500

Salary expense 1,600
Depreciation expense 50
Insurance expense 150
Fuel expense 100
Rent expense 500
Supplies expense 100

Jan. 31 Clo 3 Income summary 2,300

Paul Dwyer, Capital 2,300

Jan. 31 Clo 4 Paul Dwyer, Capital 1,900

Paul Dwyer, Withdrawal 1,900
Req. 7 Dwyer Delivery Service
Post-Closing Trial Balance
January 31, 2011
Debit Credit
Cash $5,000
Accounts receivable 800
Supplies 100
Prepaid insurance 450
Delivery truck 10,000
Accumulated depreciation $50
Salary payable 800
Unearned service revenue 100
Paul Dwyer, Capital 15,400

$16,350 $16,350