Project #1

Background: Magness Delivery Service completed the below transactions during December 2016. You will also need to review the following adjustment data: a. Accrued Salaries Expense, $1,000. b. Depreciation was recorded on the truck using the straight-line method. Assume a useful life of five years and a salvage value of $5,000. c. Prepaid Insurance for the month has expired. d. Office Supplies on hand, $100. e. Unearned Revenue earned during the month, $300. f. Accrued Service Revenue, $650. Transactions: 12/01/2016 Magness Delivery Service began operations by receiving $10,000 cash and a truck with a fair value of $20,000 from Robert Magness. The business issued Magness capital in exchange for this contribution. 12/01/2016 Paid $1,000 cash for a four-month insurance policy. The policy begins December 1. 12/04/2016 Paid $500 cash for office supplies. 12/12/2016 Performed delivery services for a customer and received $2,000 cash. 12/15/2016 Completed a large delivery job, billed the customer, $2,500, and received a promise to collect the $2,500 within one week. 12/18/2016 Paid employee salary, $1,000. 12/20/2016 Received $15,000 cash for performing delivery services. 12/22/2016 Collected $800 in advance for delivery service to be performed later. 12/25/2016 Collected $2,500 cash from customer on account. 12/27/2016 Purchased fuel for the truck, paying $300 on account. 12/28/2016 Performed delivery services on account, $700. 12/29/2016 Paid office rent, $1,600, for the month of December. 12/30/2016 Paid $300 on account. 12/31/2016 Magness withdrew cash of $3,000. Here is the format for this project

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