Acctg Cycle Problem On Mal-Natalie Bigelow

Acctg Cycle Problem on MAL-Natalie Bigelow
Student: Natalie Bigelow

Date: 6/7/16
6/7/16, 3:48 PM
Instructor: Corinne Anderson

Assignment: Acctg Cycle Problem on
Course: ACCT 1110-001 Summer 2016 MAL
1. Mighty Delivery Service completed the following transactions during December 2016:
1
(Click the icon to view the transactions.)
Read the requirements2.
Requirement 1. Record each transaction in the journal. Explanations are not required. (Record debits first, then
credits. Exclude explanations from journal entries.)
Dec. 1: Mighty Delivery Service began operations by receiving $15,000 cash and a truck with a fair value of
$10,000 from Russ Mighty. The business gave Mighty capital in exchange for this contribution.
Date
Dec. 1
Accounts
Debit
Cash
15,000
Truck
10,000
Mighty, Capital
Credit
25,000
Dec. 1: Paid $600 cash for a six-month insurance policy. The policy begins December 1.
Date
Dec. 1
Accounts
Debit
Prepaid Insurance
Credit
600
Cash
600
Dec. 4: Paid $600 cash for office supplies.

Date
Dec. 4
Accounts
Debit
Office Supplies
Credit
600
Cash
600
Dec. 12: Performed delivery services for a customer and received $1,500 cash.
Date
Dec. 12
Accounts
Cash
Service Revenue
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting
Debit
Credit
1,500
1,500
Page 1 of 19
6/7/16, 3:48 PM
Dec. 15: Completed a large delivery job, billed the customer, $2,700, and received a promise to collect the
$2,700 within one week.
Date
Dec. 15
Accounts
Accounts Receivable
Debit
Credit
2,700
Service Revenue
2,700
Dec. 18: Paid employee salary, $1,500.

Date
Dec. 18
Accounts
Salaries Expense
Debit
Credit
1,500
Cash
1,500
Dec. 20: Received $3,000 cash for performing delivery services.

Date
Dec. 20
Accounts
Cash
Debit
Credit
3,000
Service Revenue
3,000
Dec. 22: Collected $1,900 in advance for delivery service to be performed later.
Date
Dec. 22
Accounts
Cash
Debit
Credit
1,900
Unearned Revenue
1,900
Dec. 25: Collected $2,700 cash from customer on account.

Date
Dec. 25
Accounts
Cash
Accounts Receivable
Debit
Credit
2,700
2,700
Page 2 of 19
6/7/16, 3:48 PM
Dec. 27: Purchased fuel for the truck, paying $250 on account. (Credit Accounts Payable)
Date
Dec. 27
Accounts
Fuel Expense
Debit
Credit
250
Accounts Payable
250
Dec. 28: Performed delivery services on account, $1,500.

Date
Dec. 28
Accounts
Accounts Receivable
Debit
Credit
1,500
Service Revenue
1,500
Dec. 29: Paid office rent, $2,100, for the month of December.
Date
Dec. 29
Accounts
Rent Expense
Debit
Credit
2,100
Cash
2,100
Dec. 30: Paid $250 on account.

Date
Dec. 30
Accounts
Accounts Payable
Debit
Credit
250
Cash
250
Dec. 31: Mighty withdrew cash of $2,900.

Date
Dec. 31
Accounts
Mighty, Withdrawals
Cash
Debit
Credit
2,900
2,900
Post the transactions to the T-accounts. Use the transaction dates as posting references. Use a "Bal." posting
Page 3 of 19
6/7/16, 3:48 PM
reference to show the ending balance of each account. For any accounts with a zero balance, select the "Bal." posting
reference and enter a "0" on the normal side of the account.
Review the journal entries you prepared above.
Cash
Accounts Payable
Dec. 1
15,000
600 Dec. 1
Dec. 12
1,500
600 Dec. 4
Dec. 20
3,000
1,500 Dec. 18
Dec. 22
1,900
2,100 Dec. 29
Dec. 25
2,700
250 Dec. 30
Dec. 30
250
Service Revenue
250 Dec. 27
1,500 Dec. 12
2,700 Dec. 15
0 Bal.
3,000 Dec. 20
1,500 Dec. 28
Salaries Payable
2,900 Dec. 31
Bal.
16,150
0 Bal.
Accounts Receivable
Dec. 15
2,700
Dec. 28
1,500
Bal.
1,500
Unearned Revenue
2,700 Dec. 25
Office Supplies
Dec. 18
1,500
1,900 Bal.
Bal.
1,500
Mighty, Capital
600
25,000 Dec. 1
Bal.
600
25,000 Bal.
Prepaid Insurance
Salaries Expense
1,900 Dec. 22
Dec. 4
Depreciation ExpenseTruck
Bal.
Mighty, Withdrawals
Dec. 1
600
Dec. 31
2,900
Bal.
600
Bal.
2,900
Truck
8,700 Bal.
Insurance Expense
Bal.
Income Summary
Fuel Expense
Dec. 1
10,000
Dec. 27
250
Bal.
10,000
Bal.
250
Accumulated DepreciationTruck
Rent Expense
Page 4 of 19
6/7/16, 3:48 PM
0 Bal.
Dec. 29
2,100
Bal.
2,100
Supplies Expense
Bal.
Requirement 3. Prepare an unadjusted trial balance as of December 31, 2016. (Exclude any accounts with a zero
balance from the trial balance.)
Review the T-accounts you prepared in Requirement 1.
Mighty Delivery Service
Unadjusted Trial Balance
December 31, 2016
Balance
Account Title
Cash
Debit
$
Accounts Receivable
Credit
16,150
1,500
Office Supplies
600
Prepaid Insurance
600
Truck
10,000
Unearned Revenue
Mighty, Capital
25,000
Mighty, Withdrawals
2,900
Service Revenue
8,700
Salaries Expense
1,500
Fuel Expense
250
Rent Expense
2,100
Total
1,900
35,600 $
35,600
Requirement 4. Journalize the adjusting entries using the adjustment data. Post adjusting entries to the T-accounts.
Begin by preparing the adjusting entries. (Record debits first, then credits. Exclude explanations from journal entries.)
a. Accrued Salaries Expense, $1,500.
Page 5 of 19
Date
Dec. 31
Adj. (a)
6/7/16, 3:48 PM
Accounts
Salaries Expense
Debit
Credit
1,500
Salaries Payable
1,500
b. Depreciation was recorded on the truck using the straight-line method. Assume a useful life of five years and a
salvage value of $4,000.
Date
Dec. 31
Adj. (b)
Accounts
Debit
Credit
100
100
c. Prepaid Insurance for the month has expired.

Date
Dec. 31
Adj. (c)
Accounts
Insurance Expense
Debit
Credit
100
Prepaid Insurance
100
d. Office supplies on hand, $250.

Date
Accounts
Dec. 31
Supplies Expense
Adj. (d)
Office Supplies
Debit
Credit
350
350
e. Unearned Revenue earned during the month, $1,400.

Date
Dec. 31
Adj. (e)
Accounts
Unearned Revenue
Service Revenue
Debit
Credit
1,400
1,400
f. Accrued Service Revenue, $1,550.
Page 6 of 19
Date
Dec. 31
6/7/16, 3:48 PM
Accounts
Debit
Accounts Receivable
Adj. (f)
Credit
1,550
Service Revenue
1,550
Post the adjusting entries to the T-accounts. The unadjusted balances of the accounts ("Bal.") have been entered for
you. Use the adjustment and corresponding letters as posting references"Adj. (a)", "Adj. (b)", etc. Use a "Bal."
posting reference on the last line of each T-account to show the adjusted balance of each account. For any accounts
with a zero balance, select the "Bal." posting reference and enter a "0" on the normal side of the account.
Review the adjusting journal entries you prepared above.
Cash
Bal.
Accounts Payable
16,150
Service Revenue
0 Bal.
8,700 Bal.
1,400 Adj. (e)
Bal.
16,150
1,550 Adj. (f)
0 Bal.
11,650 Bal.
Salaries Payable
0 Bal.
1,500 Adj. (a)
1,500 Bal.
Accounts Receivable
Bal.
1,500
Adj. (f)
1,550
Bal.
3,050
Unearned Revenue
Adj. (e)
Bal.
600
Mighty, Capital
350 Adj. (d)
25,000 Bal.
250
25,000 Bal.
Prepaid Insurance
Bal.
Bal.
600
1,900 Bal.
500 Bal.
Office Supplies
Bal.
1,400
100 Adj. (c)
500
Salaries Expense
Bal.
1,500
Adj. (a)
1,500
Bal.
3,000
Bal.
Adj. (b)
100
Bal.
100
Mighty, Withdrawals
Bal.
Bal.
2,900
2,900
Insurance Expense
Bal.
Adj. (c)
100
Bal.
100
Page 7 of 19
Truck
6/7/16, 3:48 PM
Income Summary
Fuel Expense
Bal.
10,000
Bal.
250
Bal.
10,000
Bal.
250
0 Bal.
Rent Expense
Bal.
2,100
Bal.
2,100
100 Adj. (b)

100 Bal.
Supplies Expense
Bal.
Adj. (d)
350
Bal.
350
Requirement 5. Prepare an adjusted trial balance as of December 31, 2016. (Exclude any zero balance accounts from
the adjusted trial balance.)
Page 8 of 19
6/7/16, 3:48 PM

Adjusted Trial Balance
December 31, 2016
Balance
Account Title
Cash
Debit
$
Accounts Receivable
Credit
16,150
3,050
Office Supplies
250
Prepaid Insurance
500
Truck
10,000
Salaries Payable
1,500
Unearned Revenue
500
Mighty, Capital
25,000
Mighty, Withdrawals
2,900
Service Revenue
11,650
Salaries Expense
3,000
100
Insurance Expense
100
Fuel Expense
250
Rent Expense
2,100
350
Supplies Expense
Total
100
38,750 $
38,750
Requirement 6. Prepare Mighty Delivery Service's income statement and statement of owner's equity for the month
ended December 31, 2016, and the classified balance sheet on that date. On the income statement, list expenses in
decreasing order by amountthat is, the largest expense first, the smallest expense last.
Begin by preparing the income statement. List expenses in decreasing order by amountthat is, the largest expense
first, the smallest expense last.
Review the Adjusted Trial Balance completed in Requirement 5.
Page 9 of 19
6/7/16, 3:48 PM

Income Statement
Month Ended December 31, 2016
Revenues:
Service Revenue
11,650
Expenses:
Salaries Expense
3,000
Rent Expense
2,100
Supplies Expense
350
Fuel Expense
250
100
Insurance Expense
100
5,900
Total Expenses
$
Net Income (Loss)
5,750
Prepare the statement of owner's equity. Enter any increases in capital prior to the subtotal and any decreases to
capital below the subtotal. (Enter a "0" for any zero balances. Use a minus sign or parentheses to show a decrease in
retained earnings.)
Statement of Owner's Equity
Mighty, Capital, December 1, 2016
Net income for the month
5,750
25,000
Owner contribution
$
30,750
(2,900)
Owner withdrawal
Mighty, Capital, December 31, 2016
27,850
Prepare Mighty Delivery Service's classified balance sheet on December 31, 2016. (Exclude any zero balance
accounts from the balance sheet.)
Page 10 of 19
6/7/16, 3:48 PM

Balance Sheet
December 31, 2016
Assets
Current Assets:
Cash
Accounts Receivable
16,150
3,050
Office Supplies
250
Prepaid Insurance
500
Total Current Assets
19,950
Plant Assets:
Truck
Less:
10,000
(100)
9,900
Total Plant Assets

$
Total Assets
29,850
Liabilities
Current Liabilities:
Salaries Payable
1,500
500
Unearned Revenue
2,000
Total Liabilities
Owner's Equity
27,850
Mighty, Capital
$
Total Liabilities and Owner's Equity
29,850
Requirement 7. Journalize the closing entries and post to the T-accounts.

Begin by journalizing the closing entries. (Record debits first, then credits. Exclude explanations from journal entries.)
Start by closing revenues.
Date
Dec. 31
Clos. (1)
Accounts
Service Revenue
Income Summary
Debit
Credit
11,650
11,650
Page 11 of 19
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Close expenses for the period.

Date
Dec. 31
Accounts
Income Summary
Clos. (2)
Debit
Credit
5,900
Salaries Expense
3,000
Rent Expense
2,100
Supplies Expense
350
Fuel Expense
250
Insurance Expense
100
100
Close Income Summary.

Date
Dec. 31
Accounts
Income Summary
Clos. (3)
Debit
Credit
5,750
Mighty, Capital
5,750
Close withdrawals.
Date
Dec. 31
Clos. (4)
Accounts
Mighty, Capital
Mighty, Withdrawals
Debit
Credit
2,900
2,900
Post the closing entries to the T-accounts. Use "Clos." and the corresponding number as shown in the journal entry as
posting references"Clos.(1)", "Clos.(2)", etc. The adjusted balance of each account has been entered for you. Post
any closing entries to the accounts and then calculate the post-closing balance ("Bal.") of each account (including
those that were not closed). For any accounts with a zero balance after closing, enter a "0" on the normal side of the
account. For Income Summary, calculate and enter the balance ("Bal.") before posting the entry to close out the
account. Post the entry to close Income Summary account on the same line as you entered the balance prior to closing
(the second line) and then show the post-closing balance ("Bal.") on the last (third) line of the account.
Review the closing journal entries you prepared above.
Page 12 of 19
6/7/16, 3:48 PM
Cash
Accounts Payable
Bal.
16,150
0 Bal.
Bal.
16,150
0 Bal.
Service Revenue
Clos.(1)
11,650
11,650 Bal.
0 Bal.
Salaries Payable
1,500 Bal.
1,500 Bal.
Accounts Receivable
Unearned Revenue
Salaries Expense
Bal.
3,050
500 Bal.
Bal.
3,000
Bal.
3,050
500 Bal.
Bal.
Office Supplies
Bal.
250
Bal.
250
Mighty, Capital
Clos.(4)
2,900
25,000 Bal.
5,750 Clos.(3)
3,000 Clos.(2)
Bal.
100
Bal.
100 Clos.(2)
27,850 Bal.
Prepaid Insurance
Mighty, Withdrawals
Bal.
500
Bal.
2,900
Bal.
500
Bal.
Truck
2,900 Clos.(4)
Insurance Expense
Bal.
100
Bal.
Income Summary
Bal.
10,000
Clos.(2)
5,900
Bal.
10,000
Clos.(3)
5,750
11,650 Clos.(1)
5,750 Bal.
100 Clos.(2)
Fuel Expense
Bal.
250
Bal.
250 Clos.(2)
0 Bal.
Rent Expense
100 Bal.
Bal.
2,100
100 Bal.
Bal.
2,100 Clos.(2)
Supplies Expense
Bal.
350
Bal.
350 Clos.(2)
Requirement 8. Prepare a post-closing trial balance. (Exclude any permanent accounts with a zero balance from the
Page 13 of 19
6/7/16, 3:48 PM
post-closing trial balance.)

Post-Closing Trial Balance
December 31, 2016
Balance
Account Title
Cash
Debit
$
Accounts Receivable
Credit
16,150
3,050
Office Supplies
250
Prepaid Insurance
500
Truck
10,000
100
Salaries Payable
1,500
Unearned Revenue
500
27,850
Mighty, Capital
$
Total
29,950 $
29,950
1: More Info
Dec.
Mighty Delivery Service began operations by receiving $15,000 cash and a truck with a fair value of
$10,000 from Russ Mighty. The business gave Mighty capital in exchange for this contribution.
Paid $600 cash for a six-month insurance policy. The policy begins December 1.
Paid $600 cash for office supplies.
12
Performed delivery services for a customer and received $1,500 cash.
15
Completed a large delivery job, billed the customer, $2,700, and received a promise to collect the
$2,700 within one week.
18
Paid employee salary, $1,500.
20
Received $3,000 cash for performing delivery services.
22
Collected $1,900 in advance for delivery service to be performed later.
25
Collected $2,700 cash from customer on account.
27
Purchased fuel for the truck, paying $250 on account. (Credit Accounts Payable)
28
Performed delivery services on account, $1,500.
29
Paid office rent, $2,100, for the month of December.
30
Paid $250 on account.
31
Mighty withdrew cash of $2,900.
Page 14 of 19
6/7/16, 3:48 PM
2: Requirements
1. Record each transaction in the journal using the following chart of accounts. Explanations are not required.
Cash
Mighty, Withdrawals
Accounts Receivable
Income Summary
Oce Supplies
Service Revenue
Prepaid Insurance
Salaries Expense
Truck
Insurance Expense
Accounts Payable
Fuel Expense
Salaries Payable
Rent Expense
Unearned Revenue
Supplies Expense
Mighty, Capital
2. Post the transactions in the T-accounts.
3. Prepare an unadjusted trial balance as of December 31, 2016.
4. 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. Accrued Salaries Expense, $1,500.
b. Depreciation was recorded on the truck using the straight-line method. Assume a useful life of 5 years and
a salvage value of $4,000.
c. Prepaid Insurance for the month has expired.
d. Office Supplies on hand, $250.
e. Unearned Revenue earned during the month, $1,400.
f.
Accrued Service Revenue, $1,550.
5. Prepare an adjusted trial balance as of December 31, 2016.

6. Prepare Mighty Delivery Service's income statement and statement of owner's equity for the month ended
December 31, 2016, and the classified balance sheet on that date. On the income statement, list expenses in
decreasing order by amountthat is, the largest expense first, the smallest expense last.
7. Journalize the closing entries and post to the T-accounts.
8. Prepare a post-closing trial balance as of December 31, 2016.
YOU ANSWERED:
Cash
Accounts Payable
Dec. 1
15000
600 Dec. 1
Dec. 30
Dec. 12
1500
600 Dec. 4
Dec. 20
3000
1500 Dec. 18
Dec. 22
1900
2100 Dec. 29
250
Service Revenue
250 Dec. 27
nothing
nothing
1500 Dec. 12
nothing
nothing nothing nothing
nothing
nothing
2700 Dec. 15
nothing
nothing
nothing
nothing
3000 Dec. 20
nothing
nothing
1500 Dec. 28
0 Bal.
Page 15 of 19
6/7/16, 3:48 PM
Dec. 22
1900
2100 Dec. 29
Dec. 25
2700
250 Dec. 30
nothing
nothing
2900 Dec. 31
nothing
nothing
nothing
nothing nothing
16150
nothing nothing
Bal.
nothing
nothing
nothing
nothing
nothing
nothing
nothing
nothing
nothing
Salaries Payable
Accounts Receivable
Unearned Revenue
1500 Dec. 28
8700 Bal.
Salaries Expense
Dec. 15
2700
2700 Dec. 25
nothing
nothing
1900 Dec. 22
Dec. 18
1500 nothing nothing
Dec. 28
1500
nothing nothing
nothing
nothing
Bal.
1500
nothing nothing
nothing
nothing
Bal.
Oce Supplies
Dec. 4
nothing
Bal.
Mighty, Capital
600
nothing nothing
nothing
nothing
nothing
nothing nothing
nothing
600
nothing nothing
nothing
Prepaid Insurance
Dec. 1
nothing
Bal.
1900 Bal.
25000 Dec. 1
nothing
nothing
nothing
nothing
25000 Bal.
Mighty, Withdrawals
Insurance Expense
600
nothing nothing
Dec. 31
nothing
nothing
nothing nothing
nothing
nothing
600
nothing nothing
Bal.
nothing
Truck
Income Summary
Fuel Expense
Dec. 1
10000
nothing nothing
Dec. 27
250 nothing nothing
nothing
nothing
nothing nothing
nothing
10000
nothing nothing
Bal.
Bal.
250 nothing nothing
Rent Expense
nothing
nothing
nothing nothing
Dec. 29
nothing
nothing
nothing nothing
nothing
nothing
nothing
nothing nothing
Bal.
Supplies Expense
nothing
nothing

Page 16 of 19
6/7/16, 3:48 PM
nothing
Date
Dec. 31
Adj. (b)
Accounts
Debit
Credit
66.67
nothing
nothing
66.67
nothing
nothing
nothing
nothing
nothing
nothing

Income Statement
Revenues:
Service Revenue
11650
Expenses:
Salaries Expense
3000
100
Insurance Expense
100
Fuel Expense
250
Rent Expense
2100
Supplies Expense
Total Expenses
Net Income (Loss)
350
5900
5750
Page 17 of 19
6/7/16, 3:48 PM
Cash
Accounts Payable
Service Revenue
Bal.
16,150
nothing nothing
nothing
nothing
0 Bal.
Clos.(1)
11650
11,650 Bal.
Bal.
16150
nothing nothing
nothing
nothing
0 Bal.
nothing
nothing
0 Bal.
Salaries Payable
nothing
nothing
1,500 Bal.
nothing
nothing
1500 Bal.
Accounts Receivable
Unearned Revenue
Salaries Expense
Bal.
3,050
nothing nothing
nothing
nothing
500 Bal.
Bal.
Bal.
3050
nothing nothing
nothing
nothing
500 Bal.
Bal.
Oce Supplies
Mighty, Capital
Bal.
250
nothing nothing
Clos.(4)
2900
Bal.
250
nothing nothing
nothing
nothing
nothing
nothing
Prepaid Insurance
500
nothing nothing
Bal.
Bal.
500
nothing nothing
Bal.
Truck
2,900
25,000 Bal.
5750 Clos.(3)
Bal.
Bal.
0 nothing nothing
Bal.
Income Summary
nothing nothing
Clos.(2)
5900
Bal.
10000
nothing nothing
Clos.(3)
5750
100
100 Clos.(2)
0 nothing nothing
Insurance Expense
Bal.
10,000
0 nothing nothing
27850 Bal.
2900 Clos.(4)
Bal.
3000 Clos.(2)
Mighty, Withdrawals
Bal.
3,000
11650 Clos.(1)
5750 Bal.
100
100 Clos.(2)
0 nothing nothing
Fuel Expense
Bal.
250
100 Clos.(2)
Bal.
150 nothing nothing
0 Bal.
Rent Expense
nothing
nothing
100 Bal.
Bal.
nothing
nothing
100 Bal.
Bal.
2,100
2100 Clos.(2)
0 nothing nothing
Supplies Expense
Bal.
Bal.
350
350 Clos.(2)
0 nothing nothing
Page 18 of 19
6/7/16, 3:48 PM
2. Accounting Cycle Comprehensive Problem

My Accounting Cycle Comprehensive Problem was required to be uploaded to my ePortfolio.
Also, I was required to write a "reflection" on this assignment.
Then I emailed my ePortfolio link to my instructor
Page 19 of 19

Acctg Cycle Problem On Mal-Natalie Bigelow

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Acctg Cycle Problem on MAL-Natalie Bigelow

Student: Natalie Bigelow

Instructor: Corinne Anderson

Dec. 4: Paid $600 cash for office supplies.