Question

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

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.

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.

General Journal
Date	Description	Debit	Credit
Apr. 1	AnswerAccounts ReceivableAccounts PayableCommon StockCash	Answer	Answer
	AnswerAccounts ReceivableAccounts PayableCommon StockCash	Answer	Answer
	Owner invested cash.
Apr. 2	AnswerCashAccounts ReceivableTruckAccounts Payable	Answer	Answer
	AnswerCashAccounts ReceivableTruckAccounts Payable	Answer	Answer
	Purchased truck.
Apr. 2	AnswerSuppliesAccounts ReceivableAccounts PayableEquipment	Answer	Answer
	Cash	Answer	Answer
	AnswerSuppliesAccounts ReceivableAccounts PayableEquipment	Answer	Answer
	Purchased equipment.
Apr. 3	AnswerAccounts PayableAccounts ReceivablePrepaid InsuranceCash	Answer	Answer
	AnswerAccounts PayableAccounts ReceivablePrepaid InsuranceCash	Answer	Answer
	Purchased liability insurance.
Apr. 5	AnswerAccounts PayableSuppliesEquipmentAccounts Receivable	Answer	Answer
	AnswerAccounts PayableSuppliesEquipmentAccounts Receivable	Answer	Answer
	Purchased supplies.
Apr. 5	AnswerUnearned Roofing FeesAccounts ReceivableCashAccounts Payable	Answer	Answer
	AnswerUnearned Roofing FeesAccounts ReceivableCashAccounts Payable	Answer	Answer
	Received advanced payment for repair work.
Apr. 12	AnswerEquipmentAccounts ReceivableAccounts PayableRoofing Fees Earned	Answer	Answer
	AnswerEquipmentAccounts ReceivableAccounts PayableRoofing Fees Earned	Answer	Answer
	Billed for services performed.
Apr. 18	AnswerSuppliesCashAccounts PayableAccounts Receivable	Answer	Answer
	AnswerSuppliesCashAccounts PayableAccounts Receivable	Answer	Answer
	Collected from customers billed on April 12.
Apr. 29	AnswerFuel ExpenseCashAccounts ReceivableAccounts Payable	Answer	Answer
	AnswerFuel ExpenseCashAccounts ReceivableAccounts Payable	Answer	Answer
	Paid for April fuel expense.
Apr. 30	AnswerAdvertising ExpenseAccounts PayableCashEquipment	Answer	Answer
	AnswerAdvertising ExpenseAccounts PayableCashEquipment	Answer	Answer
	Paid for April newspaper advertising.
Apr. 30	AnswerCashSuppliesAccounts PayableWages Expense	Answer	Answer
	AnswerCashSuppliesAccounts PayableWages Expense	Answer	Answer
	Paid wages.
Apr. 30	AnswerEquipmentAccounts ReceivableAccounts PayableRoofing Fees Earned	Answer	Answer
	AnswerEquipmentAccounts ReceivableAccounts PayableRoofing Fees Earned	Answer	Answer
	Recorded fees earned.

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.

Cash
	Answer	Answer
	Answer	Answer
	Answer	Answer
	Answer	Answer
	Answer	Answer
	Answer	Answer

Accounts Receivable
	Answer	Answer
	Answer	Answer

Supplies
	Answer	Answer

Prepaid Insurance
	Answer	Answer

Trucks
	Answer	Answer

Equipment
	Answer	Answer

Accumulated Depreciation - Equipment
	Answer	Answer

Accumulated Depreciation - Trucks
	Answer	Answer

Accounts Payable
	Answer	Answer
	Answer	Answer

Unearned Roofing Fees
	Answer	Answer

Common Stock
	Answer	Answer

Roofing Fees Earned
	Answer	Answer
	Answer	Answer
	Answer	Answer

Depreciation Expense - Trucks
	Answer	Answer

Fuel Expense
	Answer	Answer

Advertising Expense
	Answer	Answer

Depreciation Expense - Equipment
	Answer	Answer

Wages Expense
	Answer	Answer

Supplies Expense
	Answer	Answer

Insurance Expense
	Answer	Answer

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.

General Journal
Date	Description	Debit	Credit
Apr. 30	AnswerCashInsurance ExpensePrepaid InsuranceAccounts Payable	Answer	Answer
	AnswerCashInsurance ExpensePrepaid InsuranceAccounts Payable	Answer	Answer
	To record insurance expense.
Apr. 30	AnswerSuppliesSupplies ExpenseAccounts PayableCash	Answer	Answer
	AnswerSuppliesSupplies ExpenseAccounts PayableCash	Answer	Answer
	To record supplies expense.
Apr. 30	AnswerAccumulated Depreciation-TrucksCashAccounts PayableDepreciation Expense-Trucks	Answer	Answer
	AnswerAccumulated Depreciation-TrucksCashAccounts PayableDepreciation Expense-Trucks	Answer	Answer
	To record truck depreciation expense.
Apr. 30	AnswerAccumulated Depreciation-EquipmentDepreciation Expense-EquipmentAccounts PayableCash	Answer	Answer
	AnswerAccumulated Depreciation-EquipmentDepreciation Expense-EquipmentAccounts PayableCash	Answer	Answer
	To record equipment depreciation expense.
Apr. 30	AnswerAccounts PayableRoofing Fees EarnedCashUnearned Roofing Fees	Answer	Answer
	AnswerAccounts PayableRoofing Fees EarnedCashUnearned Roofing Fees	Answer	Answer
	To record fees earned.

Answer 1

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