Comprehensive Problem 1, cont.
Requirement 1, cont.
Dec. 30
Accounts Payable
300
Cash
300
Requirement 2, 5, 8
Cash
Accounts Payable
Dec. 1
10,000
1,000
Dec. 1
Dec. 30
300
300
Dec. 27
Dec. 12
2,000
500
Dec. 20
15,000
1,000
Dec. 18
Bal.
Dec. 22
800
1,600
1,000
Accounts Receivable
Dec. 15
2,500
2,500
Dec. 25
Unearned Revenue
Dec. 28
700
Adj.
300
800
Dec. 22
Adj.
650
Bal.
1,350
500
Bal.
Common Stock
30,000
Dec. 1
30,000
Bal.
Dec. 4
500
400
3,000
Balance
Bal.
100
Dec. 1
1,000
250
Dec. 31
3,000
Comprehensive Problem 1, cont.
Requirement 2, 5, 8, cont.
Truck
Income Summary
Dec. 1
20,000
Clos.
4,800
21,150
Clos.
Clos.
16,350
16,350
Bal.
Bal.
20,000
0
Bal.
250
2,000
2,500
250
15,000
700
300
650
Clos.
21,150
21,150
Bal.
0
Bal.
Salaries Expense
Dec. 18
1,000
Adj.
1,000
Bal.
2,000
2,000
Clos.
Bal.
0
Depreciation Expense—Truck
Adj.
250
Bal.
250
250
Clos.
Bal.
0
Bal.
250
250
Clos.
Bal.
0
Dec. 27
Bal.
300
300
Clos.
Bal.
Dec. 29
1,600
Comprehensive Problem 1
Requirement 2, 5, 8, cont.
Supplies Expense
Adj.
400
Bal.
400
400
Clos.
Bal.
0
Requirement 3
MILLER DELIVERY SERVICE
Unadjusted Trial Balance
December 31, 2016
Account Title
Balance
Debit
Credit
Cash
$ 22,900
Accounts Receivable
700
Office Supplies
500
Prepaid Insurance
Truck
Unearned Revenue
Common Stock
Dividends
Service Revenue
Salaries Expense
Fuel Expense
300
Rent Expense
Total
$ 51,000
Comprehensive Problem 1, cont.
Requirement 4
MILLER DELIVERY SERVICE
Worksheet
December 31, 2016
Account Names
Unadjusted Trial
Balance
Adjustments
Adjusted Trial Balance
Income Statement
Balance Sheet
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$ 22,900
700
$ 650
Office Supplies
500
d.
100
Prepaid Insurance
250
c.
750
Truck
250
b.
$ 250
$ 250
Accounts Payable
Salaries Payable
1,000
a.
1,000
1,000
e.
Dividends
Service Revenue
950
e., f.
Salaries Expense
a.
Truck
b.
250
250
250
Insurance Expense
c.
250
250
250
Fuel Expense
300
300
300
Rent Expense
1,600
1,600
1,600
d.
400
400
Total
$ 51,000
$ 51,000
$ 2,850
Comprehensive Problem 1, cont.
Requirement 5
Date
Accounts
Debit
Credit
a.
Salaries Expense
1,000
Salaries Payable
1,000
b.
Depreciation Expense—Truck
250
Accumulated Depreciation—Truck
250
Insurance Expense
250
250
Supplies Expense
400
e.
Unearned Revenue
300
Accounts Receivable
650
650
Comprehensive Problem 1, cont.
Requirement 6
MILLER DELIVERY SERVICE
Adjusted Trial Balance
December 31, 2016
Account Title
Balance
Debit
Credit
Cash
$ 22,900
Accounts Receivable
1,350
Office Supplies
100
Prepaid Insurance
750
Truck
Accumulated Depreciation—Truck
Salaries Payable
Unearned Revenue
Common Stock
Dividends
3,000
Service Revenue
Salaries Expense
2,000
Depreciation Expense—Truck
250
Insurance Expense
250
Fuel Expense
300
Rent Expense
1,600
Supplies Expense
400
Comprehensive Problem 1, cont.
Requirement 7
MILLER DELIVERY SERVICE
Income Statement
Month Ended December 31, 2016
Revenues:
Service Revenue
$
21,150
Expenses:
Salaries Expense
Depreciation Expense—Truck
Fuel Expense
Insurance Expense
Total Expenses
Net Income
MILLER DELIVERY SERVICE
Comprehensive Problem 1, cont.
Requirement 7, cont.
MILLER DELIVERY SERVICE
Balance Sheet
December 31, 2016
Assets
Current Assets:
Cash
$ 22,900
Accounts Receivable
1,350
Office Supplies
100
Prepaid Insurance
750
Plant Assets:
Truck
Less: Accumulated Depreciation—Truck
Total Plant Assets
Total Assets
$ 44,850
Liabilities
Current Liabilities:
Salaries Payable
$ 1,000
Unearned Revenue
500
Total Current Liabilities
$ 1,500
Total Liabilities
1,500
Common Stock
Retained Earnings
Total Liabilities and Stockholders’ Equity
$ 44,850
Comprehensive Problem 1, cont.
Requirement 8
Date
Accounts
Debit
Credit
Dec. 31
Service Revenue
21,150
Income Summary
21,150
Income Summary
Salaries Expense
2,000
Depreciation Expense—Truck
Insurance Expense
Fuel Expense
Rent Expense
1,600
Supplies Expense
Income Summary
16,350
Retained Earnings
3,000
Requirement 9
MILLER DELIVERY SERVICE
Post-Closing Trial Balance
December 31, 2016
Account Title
Balance
Debit
Credit
Cash
$ 22,900
Accounts Receivable
1,350
Office Supplies
100
Prepaid Insurance
750
Truck
Accumulated Depreciation—Truck
Accounts Payable
Salaries Payable
Unearned Revenue
Common Stock
Comprehensive Problem 2 for Chapters 1–4:
This comprehensive problem is a continuation of Comprehensive Problem 1. Miller Delivery Service
has completed closing entries and the accounting cycle for 2016. The business is now ready to record
January 2017 transactions.
Requirements
1. Record each January transaction in the journal. Explanations are not required.
2. Post the transactions in the T-accounts. Don’t forget to use the December 31, 2016, ending balances
as appropriate.
3. Prepare an unadjusted trial balance as of January 31, 2017.
4. Prepare a worksheet as of January 31, 2017. (optional)
5. Journalize the adjusting entries using the following adjustment data and also by reviewing the
journal entries prepared in Requirement 1. Post adjusting entries to the T-accounts.
Adjustment data:
a. Office Supplies on hand, $120.
6. Prepare an adjusted trial balance as of January 31, 2017.
7. Prepare Miller Delivery Service’s income statement and statement of retained earnings for the month
SOLUTION
Requirement 1
Date
Accounts
Debit
Credit
Jan. 3
Cash
1,000
Accounts Receivable
1,000
Office Supplies
600
Accounts Payable
600
12
Cash
2,000
Service Revenue
2,000
15
Salaries Expense
1,500
Salaries Payable
1,000
Cash
2,500
18
Accounts Receivable
950
Service Revenue
950
20
Accounts Payable
200
Cash
200
24
Fuel Expense
250
Cash
250
27
Unearned Revenue
500
Service Revenue
500
28
Rent Expense
1,600
Cash
1,600
30
Cash
3,200
Unearned Revenue
3,200
31
Dividends
2,000
Cash
2,000
Comprehensive Problem 2, cont.
Requirement 2, 5
Bal.
22,900
2,500
Jan. 15
Jan. 20
600
1,000
200
Jan. 20
Jan. 12
2,000
250
Jan. 24
400
Bal.
Jan. 30
3,200
1,600
Jan. 28
2,000
Jan. 31
1,000
Bal.
1,000
Bal.
Accounts Receivable
Bal.
1,350
1,000
Jan. 3
Unearned Revenue
Jan. 18
950
Jan. 27
500
500
Bal.
Adj.
1,200
3,200
Jan. 30
Bal.
2,500
3,200
Bal.
Office Supplies
Common Stock
Bal.
100
30,000
Bal.
Jan. 5
600
580
Adj.
Bal.
120
30,000
Bal.
Bal.
750
Jan. 31
250
Adj.
500
20,000
13,350
Bal.
250
Adj.
950
Jan. 18
500
500
Jan. 27
1,200
Adj.