Question

Journalizing and Posting Transactions and Adjustments D. Roulstone opened Roulstone Roofing Service on April 1. Transactions for April follow.

Apr.1	Roulstone contributed $11,500 cash to the business in exchange for common stock.
2	Paid $6,100 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 $2,880 cash for two-year (or 24-month) premium toward liability insurance.
5	Purchased $1,200 of supplies on credit.
5	Received an advance of $1,800 cash from a customer for roof repairs to be done during April and May.
12	Billed customers $5,500 for roofing services performed.
18	Collected $4,900 cash from customers toward their accounts billed on April 12.
29	Paid $675 cash for truck fuel used in April.
30	Paid $100 cash for April newspaper advertising.
30	Paid $4,500 cash for assistants' wages earned.
30	Billed customers $4,000 for roofing services performed.

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.

Post the above journal entries from part b. 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.

• Record insurance expense for April.
• Supplies still available on April 30 was $200.
• Record depreciation expense of $125 for truck for April.
• Record depreciation expense of $35 for equipment for April.
• One-fourth of roofing fee received April 5, was earned by April 30.

Answer 1

a. In the books of Roulstone Roofing Service :

Date	General Journal	Debit	Credit
Apr.		$	$
1.	Cash	11,500
	Common Stock		11,500
2	Trucks	6,100
	Cash		6,100
2	Equipment	6,200
	Cash		1,000
	Accounts Payable		5,200
3	Prepaid Insurance	2,880
	Cash		2,880
5	Supplies	1,200
	Accounts Payable		1,200
5	Cash	1,800
	Unearned Roofing Fees		1,800
12	Accounts Receivable	5,500
	Roofing Fees Earned		5,500
18	Cash	4,900
	Accounts Receivable		4,900
29	Fuel Expense	675
	Cash		675
30	Advertising Expense	100
	Cash		100
30	Wages Expense	4,500
	Cash		4,500
30	Accounts Receivable	4,000
	Roofing Fees Earned		4,000

b.

Cash
Apr 1	11,500	Apr 2	6,100
5	1,800	2	1,000
18	4,900	3	2,880
		29	675
		30	100
		30	4,500
Bal, Apr 30	2,945
Accounts Receivable
Apr 12	5,500	Apr 18	4,900
30	4,000
Bal. Apr 30	4,600
Supplies
Apr 5	1,200	Adj. 2	1,000
Bal. Apr 30	200
Prepaid Insurance
Apr 3	2,880	Adj. 1	120
Bal, Apr 30	2,760
Trucks
Apr. 2	6,100
Bal. Apr. 30	6,100
Accumulated Depreciation : Trucks
		Adj. 3	125
		Bal. Apr 30	125
Equipment
Apr 2	6,200
Bal., Apr 30	6,200
Accumulated Depreciation : Equipment
		Adj. 4	35
		Bal. Apr. 30	35
Accounts Payable
		Apr. 2	5,200
		5	1,200
		Bal, Apr 30	6,400
Unearned Roofing Fees
Adj. 5	450	Apr 5	1,800
		Bal. Apr 30	1,350
Common Stock
		Apr. 1	11,500
		Bal. Apr 30	11,500
Roofing Fees Earned
		Apr. 12	5,500
		30	4,000
		Adj. 5	450
		Bal. Apr. 30	9,950
Wages Expense
Apr 30	4,500
Bal, Apr. 30	4,500
Insurance Expense
Adj 1	120
Bal, Apr 30	120
Supplies Expense
Adj. 2	1,000
Bal. Apr 30	1,000
Advertising Expense
Apr. 30	100
Bal. Apr 30	100
Fuel Expense
Apr. 29	675
Bal., Apr 30	675
Depreciation Expense: Trucks
Adj 3	125
Bal., Apr 30	125
Depreciation Expense: Equipment
Adj. 4	35
Bal. Apr. 30	35

c. Adjusting Entries:

Date	General Journal	Debit	Credit
April 30		$	$
1.	Insurance Expense	120
	Prepaid Insurance		120
2.	Supplies Expense	1,000
	Supplies		1,000
3.	Depreciation Expense	125
	Accumulated Depreciation : Trucks		125
4.	Depreciation Expense	35
	Accumulated Depreciation : Equipment		35
5.	Unearned Roofing Fees	450
	Roofing Fees Earned		450