Matthews Delivery Service’s-comprehensive problem

September 29,2014
Accounting “The Financial Chapter”
Test on Chapter 1
through 4

Student Name: Id
No.

I.
Completing the Accounting
Cycle:
a.
Record all necessaries entries.
b.
Make all necessaries journals
Adjustments
c.
Build Adjustment Trial Balance
and Adjustment Trial Balance
d.
Prepare all Financials Reports
(4 Principals Reports)

September 2014 Test

Requirements

1. Record each transaction in the
journal. Explanations are not required.

2. “Post the transactions in the
T-accounts using the following chart of accounts.
”

3. Prepare an unadjusted trial balance
as of December 31, 2014.

4. Prepare a worksheet as of December
31, 2014. (optional)

5. Journalize the adjusting entries
using the following adjustment data. Post adjusting entries to the T-accounts.

6. Prepare an adjusted trial balance as
of December 31, 2014.

7. Prepare Matthews Delivery Service’s
income statement and statement of retained earnings for the month ended
December 31, 2014, and the classified balance sheet on that date. On the income
statement, list expenses in decreasing order by amount—that is, the largest
expense first, the smallest expense last.

8. Journalize the closing entries and
post to the T-accounts.

9. “Prepare a post- closing trial
balance as of December 31, 2014.
”

Solution:

Requirement
1

Date Accounts and Explanation Debit Credit

Accounts
and Explanation

Requirement
2, 5 and 8

Cash Accounts
Payable

Salaries
Payable

Accounts
Receivable Unearned
Revenue

Office
Supplies Matthews,
Capital

Prepaid
Insurance Matthews,
Withdrawals

Truck Income
Summary

Accumulated
Depreciation—Truck Service
Revenue

Salaries
Expense Depreciation
Expense—Truck

Insurance
Expense Fuel
Expense

Rent
Expense Supplies
Expense

Requirement
3

MATTHEWS
DELIVERY SERVICE
Unadjusted
Trial Balance
December
31, 2014
Balance
Account
Title Debit Credit

Requirement
4

MATTHEWS
DELIVERY SERVICE
Worksheet
December
31, 2014

Account
Names Unadjusted Trial
Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit

Requirement
5

Date Accounts and Explanation Debit Credit

Requirement
6

MATTHEWS
DELIVERY SERVICE
Adjusted
Trial Balance
December
31, 2014
Balance
Account
Title Debit Credit

Requirement
7

MATTHEWS
DELIVERY SERVICE
Income
Statement
Month
Ended December 31, 2014

MATTHEWS
DELIVERY SERVICE
Statement
of Owner’s Equity
Month
Ended December 31, 2014

MATTHEWS
DELIVERY SERVICE
Balance
Sheet
December
31, 2014
Assets

Liabilities

Owner’s
Equity

Requirement
8

Date Accounts and Explanation Debit Credit

Requirement
9

MATTHEWS
DELIVERY SERVICE
Post-Closing
Trial Balance
December
31, 2014
Balance
Account
Title Debit Credit