sholloway08
Mar 22, 2009, 01:33 PM
Dwyer Delivery Service completed the following transactions during its first month
of operations, January 2009.
a. Dwyer Delivery Service, a proprietorship, began operations by receiving
from the owner $5,000 cash and a truck valued at $10,000. The business
gave Paul Dwyer, the owner, capital in the business.
b. Paid $200 cash for supplies.
c. Prepaid insurance, $600.
d. Performed delivery services for a customer and received $700 cash.
e. Completed a large delivery job, billed the customer $2,000, and
received a promise to collect the $2,000 within one week.
f. Paid employee salary, $800.
g. Received $900 cash for performing delivery services.
h. Collected $500 in advance for delivery service to be performed later.
i. Collected $2,000 cash from a customer on account.
j. Purchased fuel for the truck, paying $100 with a company credit card.
Credit Accounts Payable.
k. Performed delivery services on account, $800.
l. Paid office rent, $500. This rent is not paid in advance.
m.Paid $100 on account.
n. Dwyer withdrew $1,900 for personal use.
Now, I would just like to make sure that I'm doing this correctly, since if you mess up one little thing in accounting, everything will be incorrect. Here is what I have done when journalizing:
DR Cash 5,000
DR Delivery Truck 10,000
CR Paul Dwyer, Capital 15,000
Received investment from owner.
DR Supplies 200
CR Cash 200
Purchased supplies for cash.
DR Pre-Paid Insurance 600
CR Pre-Paid Insurance Expense 600
Pre-Paid Insurance.
DR Cash 700
CR Service Revenue 700
Provided service for cash.
DR Accounts Receivable 2,000
CR Service Revenue 2,000
Provided service on credit.
DR Salary Expense 800
CR Cash 800
Made payment of salary using cash.
DR Cash 900
CR Accounts Receivable 900
Received payment from customer on account.
DR Cash 500
CR Unearned Service Revenue 500
Received cash for services not yet rendered.
DR Cash 2,000
CR Accounts Receivable 2,000
Received payment from customer on account.
DR Fuel Expense 100
CR Accounts Payable 100
Purchased fuel for truck with credit card.
DR Accounts Receivable 800
CR Service Revenue 800
Performed delivery service on account.
DR Rent Expense 500
CR Cash 500
Made payment of rent using cash.
DR Accounts Receivable 100
CR Cash 100
Paid cash on account.
DR Paul Dwyer, Withdrawals 1,900
CR Cash 1,900
Cash withdrawal by owner for personal use.
Also, is there anywhere in there where I'm missing that I have to put Income Summary, Accumulated Depriciation, and Depriciation Expense?
Thank you sooo much! (in advance) :)
of operations, January 2009.
a. Dwyer Delivery Service, a proprietorship, began operations by receiving
from the owner $5,000 cash and a truck valued at $10,000. The business
gave Paul Dwyer, the owner, capital in the business.
b. Paid $200 cash for supplies.
c. Prepaid insurance, $600.
d. Performed delivery services for a customer and received $700 cash.
e. Completed a large delivery job, billed the customer $2,000, and
received a promise to collect the $2,000 within one week.
f. Paid employee salary, $800.
g. Received $900 cash for performing delivery services.
h. Collected $500 in advance for delivery service to be performed later.
i. Collected $2,000 cash from a customer on account.
j. Purchased fuel for the truck, paying $100 with a company credit card.
Credit Accounts Payable.
k. Performed delivery services on account, $800.
l. Paid office rent, $500. This rent is not paid in advance.
m.Paid $100 on account.
n. Dwyer withdrew $1,900 for personal use.
Now, I would just like to make sure that I'm doing this correctly, since if you mess up one little thing in accounting, everything will be incorrect. Here is what I have done when journalizing:
DR Cash 5,000
DR Delivery Truck 10,000
CR Paul Dwyer, Capital 15,000
Received investment from owner.
DR Supplies 200
CR Cash 200
Purchased supplies for cash.
DR Pre-Paid Insurance 600
CR Pre-Paid Insurance Expense 600
Pre-Paid Insurance.
DR Cash 700
CR Service Revenue 700
Provided service for cash.
DR Accounts Receivable 2,000
CR Service Revenue 2,000
Provided service on credit.
DR Salary Expense 800
CR Cash 800
Made payment of salary using cash.
DR Cash 900
CR Accounts Receivable 900
Received payment from customer on account.
DR Cash 500
CR Unearned Service Revenue 500
Received cash for services not yet rendered.
DR Cash 2,000
CR Accounts Receivable 2,000
Received payment from customer on account.
DR Fuel Expense 100
CR Accounts Payable 100
Purchased fuel for truck with credit card.
DR Accounts Receivable 800
CR Service Revenue 800
Performed delivery service on account.
DR Rent Expense 500
CR Cash 500
Made payment of rent using cash.
DR Accounts Receivable 100
CR Cash 100
Paid cash on account.
DR Paul Dwyer, Withdrawals 1,900
CR Cash 1,900
Cash withdrawal by owner for personal use.
Also, is there anywhere in there where I'm missing that I have to put Income Summary, Accumulated Depriciation, and Depriciation Expense?
Thank you sooo much! (in advance) :)