W. Weinstein, roofing contractor, began business on May 1 of the current year. The following transactions occurred during May:
1) Weinstein invested $25,000 of his personal funds in the
business.
2) Purchased equipment on account, $2,400.
3) Paid the premium for a one-year liability insurance policy,
$720.
4) Purchased supplies on account, $580.
5) Purchased a truck for $8,500; Weinstein paid $2,500 cash and
gave a note payable for the balance.
6) Paid rent for May, $750.
7) Paid fuel bill for truck, $70.
8) Billed customers for services rendered, $9,200.
9) Paid $1,000 on account for equipment purchased in transaction
(2).
10) Paid utilities expense for May, $120.
11) Received invoice for May advertising expense, to be paid in
June, $150.
12) Paid employees' wages, $1,450.
13) Collected $5,300 on accounts receivable,
14) Withdrew $800 for personal expenses.
15) Counted supplies on hand at May 31; $320 worth remained,
16) Recorded the insurance expired at May 31, $60.
REQUIRED
(a) Record the above transactions in T accounts, and key entries with the numbers of the transactions. The following accounts will be needed to record the transactions for May:
Cash; Accounts Receivable; Supplies on Hand; Prepaid Insurance; Equipment, Truck; Notes Payable; Accounts Payable; Weinstein, Capital; Weinstein, Drawing; Service Fees; Rent Expense; Wages Expense; Utilities Expense; Truck Expense; Advertising Expense; Supplies Expense; and Insurance Expense.
(b) Prepare a trial balance of the general ledger as of May 31.
Solution
W. Weinstein
T – Accounts
T-Accounts |
|||||
Transaction. No. |
Cash |
Transaction |
|||
1 |
Capital |
$25,000 |
3 |
Prepaid Insurance |
$720 |
13 |
Accounts Receivable |
$5,300 |
5 |
Truck |
$2,500 |
6 |
Rent Expense |
$750 |
|||
7 |
truck Expense |
$70 |
|||
9 |
Accounts Payable |
$1,000 |
|||
10 |
Utilities Expense |
$120 |
|||
12 |
Salaries and Wages Expense |
$1,450 |
|||
14 |
Drawings |
$800 |
|||
Total |
$30,300 |
Total |
$30,300 |
||
Ending Balance |
$22,890 |
||||
Transaction no. |
Accounts Receivable |
Transaction no. |
|||
8 |
Service Revenue |
$9,200 |
13 |
Cash |
$5,300 |
total |
$9,200 |
Total |
$9,200 |
||
Ending balance |
$3,900 |
||||
Transaction No. |
Supplies on Hand |
Transaction No. |
|||
4 |
Accounts Payable |
$580 |
Supplies Expense |
$260 |
|
total |
$580 |
Total |
$580 |
||
Ending balance |
$320 |
||||
Transaction no. |
Prepaid Insurance |
Transaction no. |
|||
3 |
Cash |
$720 |
Insurance Expense |
$60 |
|
total |
$720 |
Total |
$720 |
||
Ending balance |
$660 |
||||
Transaction no. |
Equipment |
Transaction no. |
|||
Accounts Payable |
$2,400 |
||||
$2,400 |
Total |
$2,400 |
|||
Ending balance |
$2,400 |
||||
Transaction no. |
Truck |
Transaction no. |
|||
5 |
Cash |
$2,500 |
|||
5 |
Notes Payable |
$6,000 |
|||
Total |
$8,500 |
Total |
$8,500 |
||
Ending balance |
$8,500 |
||||
Transaction no. |
Notes Payable |
Transaction no. |
|||
5 |
5 |
Truck |
$6,000 |
||
Total |
$6,000 |
Total |
$6,000 |
||
Ending balance |
$6,000 |
||||
Transaction |
Accounts Payable |
Transaction no. |
|||
9 |
Cash |
$1,000 |
4 |
Supplies on Hand |
$580 |
2 |
Equipment |
$2,400 |
|||
Total |
2,980 |
Total |
$2,980 |
||
Ending balance |
$1,980 |
||||
Transaction no. |
Weinstein Capital |
Transaction no. |
|||
1 |
Cash |
$25,000 |
|||
Total |
$25,000 |
Total |
$25,000 |
||
Ending balance |
$25,000 |
||||
Transaction no. |
Weinstein Drawings |
Transaction no. |
|||
14 |
Cash |
$800 |
|||
Ending bal. |
$800 |
Total |
$800 |
||
Transaction no. |
Service Fees |
Transaction no |
|||
8 |
Accounts Receivable |
$9,200 |
|||
Total |
$9,200 |
Total |
$9,200 |
||
Ending balance |
$9,200 |
||||
Transaction no. |
Rent Expense |
Transaction no. |
|||
6 |
cash |
$750 |
|||
Total |
$750 |
Total |
$750 |
||
Ending balance |
$750 |
||||
Transaction no. |
Wages Expense |
Transaction no. |
|||
12 |
Cash |
$1,450 |
|||
Total |
$1,450 |
Total |
$1,450 |
||
Ending balance |
$1,450 |
||||
Transaction no. |
Utilities Expense |
Transaction no. |
|||
10 |
Cash |
$120 |
|||
Total |
$120 |
Total |
$120 |
||
Ending balance |
$120 |
||||
Transaction no. |
Advertising Expense |
Transaction no. |
|||
11 |
Advertising Payable |
$150 |
|||
Total |
$150 |
Total |
$150 |
||
Ending balance |
$150 |
||||
Transaction no. |
Supplies Expense |
||||
15 |
Supplies on Hand |
$260 |
|||
Total |
$260 |
Total |
$260 |
||
Ending balance |
$260 |
||||
Transaction no, |
Insurance Expense |
transaction no. |
|||
16 |
Prepaid Insurance |
$60 |
|||
Total |
$60 |
Total |
$60 |
||
Ending balance |
$60 |
Trial Balance –
Trial Balance |
||
for the month ended May 31 |
||
Account Titles |
Debit |
Credit |
Cash |
$22,890 |
|
Accounts Receivable |
$3,900 |
|
Prepaid Insurance |
$660 |
|
Supplies on Hand |
$320 |
|
Equipment |
$2,400 |
|
Truck |
$8,500 |
|
Notes Payable |
$6,000 |
|
Accounts Payable |
$1,980 |
|
Advertising Payable |
$150 |
|
Weinstein Capital |
$25,000 |
|
Weinstein Drawings |
$800 |
|
Service Revenue |
$9,200 |
|
Rent Expense |
$750 |
|
Wages Expense |
$1,450 |
|
Utilities Expense |
$120 |
|
Advertising expense |
$150 |
|
Truck Expense |
$70 |
|
supplies expense |
$260 |
|
Insurance Expense |
$60 |
|
Total |
$42,330 |
$42,330 |
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