Reference no: EM13394089

Matthews Delivery Service, Inc., completed the following transactions during its first month of operations for January 2012: Matthews Delivery Service, Inc., began operations by receiving $6,000 cash and a truck valued at $11,000. The business issued common stock to acquire these assets. Paid $300 cash for supplies. Prepaid insurance, $700. Performed delivery services for a customer and received $800 cash. Completed a large delivery job, billed the customer $1,500, and received a promise to collect the $1,500 within one week. Paid employee salary, $700. Received $12,000 cash for performing delivery services. Collected $600 in advance for delivery service to be performed later. Collected $1,500 cash from a customer on account. Purchased fuel for the truck, paying $200 with a company credit card. (Credit Accounts Payable) Performed delivery services on account, $900. Paid office rent, $600. This rent is not paid in advance. Paid $200 on account. Paid cash dividends of $2,100. Matthews Delivery Service, Inc. had the following adjustments for the data given at January: Accrued salary expense, $700. Depreciation Expense, $60. Prepaid insurance expired, $250. Supplies on hand, $200. Unearned service revenue.earned during January, $500

1. Prepare Matthews Delivery Service?s income statement and statement of retained earnings for the month ended January 31, 2012, 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.

2. Journalize and post the adjusting entries beginning with a.

3. Journalize and post the closing entries.