Task 1 (20 marks)
Danial Delivery Service completed the following transactions during its first month of operations for January 2019:
- Danial started his own business by investing $50,000 cash and giving a truck valued at $100,000.
- Insurance of $6,000,paid
- Performed delivery services for a customer and received $7,000 cash.
- Completed a large delivery job, billed the customer $20,000, and received a promise to collect the $20,000 within one week.
- Received $9,000 cash for performing delivery services.
- Collected $5,000 in cash for delivery service to be performed later.
- Collected $20,000 cash from a customer on account.
- Purchased fuel for the truck, paying $1,000 in cash.
- Performed delivery services on account, $8,000.
- Danial withdrew $19,000 cash for his own personal use.
- Record each transaction in the journal. (6 marks)
(In this requirement, you have to prepare journal entries, which should appear separate from requirement 2 and 3).
- Post the transactions that you recorded in requirement 1 to T-accounts and show the balances. (3 marks)
- Prepare the trial balance for the month ended 31 January, 2019. (3 marks)
(In this requirement, you are to prepare a stand-alone trial balance.
- Record the following adjusting entries in the general Journal. (2 marks)
- Accrued salary expense, $8,000.
- Depreciation expense of Truck, $500.
- Prepare adjusted trial balance (2 marks)
(In this requirement, you have to prepare a stand-alone adjusted trial balance. This requirement is separate from requirement 3).
- Prepare Danial Delivery service’s statement of Profit and Loss and statement of Financial Position for the month ended 31 Jan 2019. (4 marks)
(In this requirement, you have to prepare a stand-alone statement of Profit and Loss and a stand-alone statement of Financial Position. Both statements should include all the headings and subheadings).
NB: An extended trial balance is not required for this task.
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