Journalizing and Posting Transactions and Adjustments D. Roulstone opened Roulst
ID: 2341219 • Letter: J
Question
Journalizing and Posting Transactions and Adjustments
D. Roulstone opened Roulstone Roofing Service on April 1. Transactions for April follow.
Using the following accounts: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Trucks; Accumulated Depreciation-Trucks; Equipment; Accumulated Depreciation-Equipment; Accounts Payable; Unearned Roofing Fees; Common Stock; Roofing Fees Earned; Fuel Expense; Advertising Expense; Wages Expense; Insurance Expense; Supplies Expense; Depreciation Expense-Trucks; and Depreciation Expense-Equipment.
b. Record these transactions for April using journal entries.
c. Post the above entries to their T-accounts.
Enter transactions in the T-accounts in the order they appear using the first available answer box on the appropriate side of the T-account.
d. Prepare journal entries to adjust the following accounts; and,
e. Post the adjusting entries to the above T-accounts.
Record insurance expense for April.
Supplies still available on April 30 was $400.
Record depreciation expense for truck for April of $250.
Record depreciation expense for equipment for April of $70.
One-fourth of roofing fee received April 5, was earned by April 30.
Apr. 1 Roulstone contributed $23,000 cash to the business in exchange for common stock. 2 Paid $12,200 cash for the purchase of a used truck. 2 Purchased $6,200 of ladders and other equipment; the company paid $1,000 cash, with the balance due in 30 days. 3 Paid $5,760 cash for two-year (or 24-month) premium toward liability insurance. 5 Purchased $2,400 of supplies on credit. 5 Received an advance of $3,600 cash from a customer for roof repairs to be done during April and May. 12 Billed customers $11,000 for roofing services performed. 18 Collected $9,800 cash from customers toward their accounts billed on April 12. 29 Paid $1,350 cash for truck fuel used in April. 30 Paid $200 cash for April newspaper advertising. 30 Paid $5,000 cash for assistants' wages earned. 30 Billed customers $8,000 for roofing services performed.Explanation / Answer
Journal Entries Date Account Tittle & Explanation Debit Credit 01-Apr Cash $23,000 Common Stock $23,000 (To record investment of cash in exchange of stock) 02-Apr Trucks $12,200 Cash $12,200 (To record cash purchase of truck) 02-Apr Equipment $6,200 Cash $1,000 Accounts payable $5,200 (To record purhcase of equipment using cash and credit) 03-Apr Prepaid insurance $5,760 Cash $5,760 (To record insurance payment) 05-Apr Supplies $2,400 Account payable $2,400 (To record credit purchase of supplies) 05-Apr Cash $3,600 Unearned Roof Fees $3,600 (To record unearned fees for roofing to be done) 12-Apr Account Recivablee $11,000 Roofing fees earned $11,000 (To record bill raised against roofing job done) 18-Apr Cash $9,800 Accounts receivable $9,800 (To record receipt of payment for roofing job performed, bill raised 12th Apr) 29-Apr Fuel expense $1,350 Cash $1,350 (To record payment of fuel expense) 30-Apr Advertising Expense $200 Cash $200 (To record payment of advertising expenses) 30-Apr Wages Expense $5,000 Cash $5,000 (To record wages paid) 30-Apr Accounts receivable $8,000 Roofing fees earned $8,000 (To record revenue for roofing service performed) Adjusting Entries 30-Apr Insurance Expense (5760/24*1) $240 Prepaid Insurance Expense $240 To Record Insurance Expense 30-Apr Suppplies Expense $2,000 Supplies $2,000 TO Record Supplies Expense 30-Apr Depreciation Expense for Tuck $250 Accumulated Depreciation $250 To Record Depreciation 30-Apr Depreciation Expense for Equipment $70 Accumulated Depreciation $70 To Record Depreciation Cash Date $ Date $ Apr-01 23,000 Apr-02 12,200 Apr-05 3,600 Apr-02 1,000 Apr-18 9,800 Apr-03 5760 Apr-29 1350 Apr-30 200 Apr-30 5,000 TOTAL 36,400 TOTAL 25,510 BALANCE 10,890 Accounts Receivable Date $ Date $ Apr-12 11,000 Apr-18 9,800 Apr-30 8,000 TOTAL 19,000 TOTAL 9,800 BALANCE 9,200 Supplies Date $ Date $ Apr-05 2,400 TOTAL 2,400 TOTAL 0 BALANCE 2,400 Prepaid insurance Date $ Date $ Apr-05 5,760 TOTAL 5,760 TOTAL 0 BALANCE 5,760 Trucks Date $ Date $ Apr-02 12,200 TOTAL 12,200 TOTAL 0 BALANCE 12,200 Equipment Date $ Date $ Apr-02 6,200 TOTAL 6,200 TOTAL 0 BALANCE 6,200 Accounts payable Date $ Date $ Apr-02 5,200 Apr-05 2,400 TOTAL 0 TOTAL 7,600 BALANCE 7,600 Roofing fees earned Date $ Date $ Apr-12 11,000 Apr-30 8,000 TOTAL 0 TOTAL 19,000 BALANCE 19,000 Unearned roofing fees Date $ Date $ Apr-05 3,600 TOTAL 0 TOTAL 3,600 BALANCE 3,600 Common Stock Date $ Date $ Apr-01 23,000 TOTAL 0 TOTAL 23,000 BALANCE 23,000 Fuel expense Date $ Date $ Apr-29 1350 TOTAL 1350 TOTAL 0 BALANCE 1350 Advertising expense Date $ Date $ Apr-30 200 TOTAL 200 TOTAL 0 BALANCE 200 Wages expense Date $ Date $ Apr-30 5,000 TOTAL 5,000 TOTAL 0 BALANCE 5,000 Insurance expense Date $ Date $ Apr-05 240 TOTAL 240 TOTAL 0 BALANCE 240 Supplies Expense Date $ Date $ Apr-05 2,000 TOTAL 2,000 TOTAL 0 BALANCE 2,000 Supplies Expense Date $ Date $ Apr-05 2,000 TOTAL 2,000 TOTAL 0 BALANCE 2,000 Depreciation Expense- Equipment Date $ Date $ Apr-05 70 TOTAL 70 TOTAL 0 BALANCE 70 Depreciation Expense- Truck Date $ Date $ Apr-05 250 TOTAL 250 TOTAL 0 BALANCE 250 Accumuulated Depreciation- Truck Date $ Date $ Apr-05 250 TOTAL 250 TOTAL 0 BALANCE 250 Accumuulated Depreciation- Equipment Date $ Date $ Apr-05 70 TOTAL 70 TOTAL 0 BALANCE 70
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