COURSE OUTCOMES COVERED IN MIDTERM:
Analyze and classify accounting information.
Record Journal Entries (debits and credits)
Complete the accounting cycle for a service business.
Prepare bank transactions and learn cash control best practices.
Prepare end-of-period adjusting and closing entries.
Prepare and understand an Income Statement, Statement of Owner’s Equity and the Balance Sheet
1. Record each transaction in the journal using the following chart of accounts. Explanations are required.
2. Post the transactions in the T-accounts.
3. Prepare an unadjusted trial balance as of December 31, 2025.
4. Prepare a worksheet as of December 31, 2025 **MUST DO**
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. Accrued Salaries Expense, $800.
b. Depreciation was recorded on the truck using the straight-line method. Assume a useful life of five years and a salvage value of $3,000.
c. Prepaid Insurance for the month has expired.
d. Office Supplies on hand, $450.
e. Unearned Revenue earned during the month, $700.
f. Accrued Service Revenue, $450.
6. Prepare an adjusted trial balance as of December 31, 2025.
7. Prepare Murphy Delivery Service’s income statement and statement of owner’s equity for the month ended December 31, 2025, 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, 2025.
