Question

Journalizing and Posting Transactions and Adjustments D. Roulstone opened Roulstone Roofing Service on April 1. Transactions for April follow. Apr.1 Roulstone contributed $34,500 cash to the business in exchange for common stock. Paid $18,300 cash for the purchase of a used truck. Purchased $9,300 of ladders and other equipment; the company paid $1,000 cash, with the balance due in 30 days. Paid $8,640 cash for two-year (or 24-month) premium toward liability insurance. Purchased $3,600 of supplies on credit. Received an advance of $5,400 cash from a customer for roof repairs to be done during April and May. Billed customers $16,500 for roofing services performed. 18 Collected $14,700 cash from customers toward their accounts billed on April 12. 29 Paid $2,025 cash for truck fuel used in April. 30 Paid $300 cash for April newspaper advertising. 30 Paid $7,500 cash for assistants' wages earned. 30 Billed customers $12,000 for roofing services performed.

Answer 1

Journal Entries Date Account Title and Explaination Debit Credit Post. Ref. Apr.30 360.00 Insurance Expense ($8640/24 Months) Prepaid Insurance (To record Expired portion of prepaid insurance) 360.00 Apr.30 3,200.00 Supplies Expense ($3600-$400) Supplies (To record Supplies Expense) 3,200.00 $ 375.00 Apr 30 Depreciation Expense Accumulated Depreciation - Truck (To record Depreciation on Truck) 375.00 105.00 Apr.30 Depreciation Expense Accumulated Depreciation - Equipment (To record Depreciation expense on equipment) $ 105.00 Apr.30 1,350.00 Unearned Service Revenue ($5400 x 1/4) Service Revenue (To record Fees Earned) 1,350.00