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Matthews Delivery Service, Inc., completed the following transactions during its first month of operations for January 2012:
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.
Paid $300 cash for supplies.
Prepaid insurance, $700.
Performed delivery services for a customer and received $800 cash.
Completed a large delivery job, billed the customer $1,500, and received a promise to collect the $1,500 within one week.
Paid employee salary, $700.
Received $12,000 cash for performing delivery services.
Collected $600 in advance for delivery service to be performed later.
Collected $1,500 cash from a customer on account.
Purchased fuel for the truck, paying $200 with a company credit card. (Credit Accounts Payable)
Performed delivery services on account, $900.
Paid office rent, $600. This rent is not paid in advance.
Paid $200 on account.
Paid cash dividends of $2,100.
Matthews Delivery Service, Inc. had the following adjustments for the data given at January 31, 2012:
Accrued salary expense, $700.
Depreciation Expense, $60.
Prepaid insurance expired, $250.
Supplies on hand, $200.
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