Question

1. Rosenthal Decorating Inc. is a commercial painting and decorating contractor that began operations in January 2019. The following transactions occurred during the year:

   1. On January 15, Rosenthal sold 500 shares of its common stock to William Hensley for $11,000.
   2. On January 24, Rosenthal purchased $720 of painting supplies from Westwood Builders' Supply Company on account.
   3. On February 20, Rosenthal paid $720 cash to Westwood Builders' Supply Company for the painting supplies purchased on January 24.
   4. On April 25, Rosenthal billed Bultman Condominiums $54,600 for painting and decorating services performed in April.
   5. On May 12, Rosenthal received $12,500 from Bultman Condominiums for the painting and decorating work billed in April.
   6. On June 5, Rosenthal sent Arlington Builders a $9,500 bill for a painting job completed on that day.
   7. On June 24, Rosenthal paid wages for work performed during the preceding week in the amount of $9,400.

   Required:

   1. Prepare a journal entry for each of the transactions listed above.

   Jan. 15	Accounts Payable Accounts Receivable Cash Common Stock Wages Expense
   	Accounts Payable Accounts Receivable Cash Common Stock Wages Expense
   	(Record issuance of stock)
   Jan. 24	Accounts Payable Accounts Receivable Cash Supplies Wages Expense
   	Accounts Payable Accounts Receivable Cash Supplies Wages Expense
   	(Record purchase of supplies on account)
   Feb. 20	Accounts Payable Accounts Receivable Cash Common Stock Wages Expense
   	Accounts Payable Accounts Receivable Cash Common Stock Wages Expense
   	(Record payment of account)
   April 25	Accounts Payable Accounts Receivable Cash Common Stock Wages Expense
   	Accounts Payable Accounts Receivable Service Revenue Supplies Wages Expense
   	(Record services performed on account)
   May 12	Accounts Payable Accounts Receivable Cash Common Stock Wages Expense
   	Accounts Payable Accounts Receivable Cash Common Stock Wages Expense
   	(Record receipt of payment)
   June 5	Accounts Payable Accounts Receivable Cash Common Stock Service Revenue
   	Accounts Payable Accounts Receivable Cash Common Stock Service Revenue Supplies Wages Expense
   	(Record services performed on account)
   June 24	Accounts Payable Accounts Receivable Cash Common Stock Wages Expense
   	Accounts Payable Accounts Receivable Cash Common Stock Wages Expense
   	(Record payment of wages)

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   2. Post the transactions to T-accounts. If a balance is zero, please enter zero ("0").

   Cash Jan. 15 Feb. 20 Jun. 24 Jan. 15 Feb. 20 Apr. 25 Feb. 20 May 12 Jun. 5 Feb. 20 May 12 Jun. 24 End. Bal.		Accounts Receivable Jan. 15 Apr. 25 May 12 Jan. 15 Apr. 25 May 12 Jan. 15 May 12 Jun. 5 End. Bal.
   Supplies Jan. 24 Feb. 20 Apr. 25 End. Bal.	Accounts Payable Jan. 24 Feb. 20 Apr. 25 Jan. 24 Feb. 20 Apr. 25 End. Bal.
   Common Stock Jan. 15 Feb. 20 Apr. 25 End. Bal.	Wages Expense Jan. 15 Feb. 20 Jun. 24 End. Bal.
   Service Revenue Jan. 15 Apr. 25 Jun. 24 Jan. 15 Feb. 20 Jun. 5 End. Bal.

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   3. Prepare a trial balance at June 30, 2019. If an amount box does not require an entry, leave it blank.

   Rosenthal Decorating Inc.
   Trial Balance
   June 30, 2019
   Account	Debit	Credit
   Accounts Payable Cash Common Stock Notes Payable Service Revenue	$	$
   Accounts Payable Accounts Receivable Common Stock Notes Payable Service Revenue
   Accounts Payable Common Stock Notes Payable Service Revenue Supplies
   Accounts Payable Accounts Receivable Cash Supplies Wages Expense
   Accounts Receivable Cash Common Stock Supplies Wages Expense
   Accounts Receivable Cash Service Revenue Supplies Wages Expense
   Accounts Payable Common Stock Notes Payable Service Revenue Wages Expense
   	$	$

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Answer 1

Credit Date Jan 15 Debit $11,000 Feb 20 Cash $11,000 Feb 20 $12,500 June 24 Accounts Payable $720 Jan 24 Accounts Titles and Explanation Cash Common Stock (Record issuance of stock) $720 Jan 15 May 12 $720 $9,400 $11,000 End Bal. $0 End Bal. $13,380 Jan 24 $720 Supplies Accounts Payable (Record purchase of supplies on account) $720 Supplies $720 Common Stock Jan 15 Jan 24 $11,000 Feb 20 $720 End Bal. $720 End Bal. $11,000 Accounts Payable Cash (Record payment of account) $720 $12,500 April 25 Accounts Receivable April 25 $54,600 May 12 -June 5 $9,500 End Bal. $51,600 Accounts Receivable Service Revenue (Record services performed on account) Service Revenue April 25 June 5 End Bal. $54,600 $54,600 $9,500 $64,100 $54,600 May 12 $12,500 Wages Expense $9,400 June 24 Cash Accounts Receivable (Record receipt of payment) $12,500 End Bal $9,400 June 5 $9,500 Accounts Receivable Service Revenue (Record services performed on account) $9,500 June 24 $9.400 Wages Expense Cash (Record payment of wages) $9,400 Rosenthal Decorating Inc. Trial Balance June 30, 2019 Debit Credit Cash $13,380 Supplies $720 Accounts Receivable $51,600 Accounts Payable $0 Common Stock $11,000 Service Revenue $64,100 Wages Expense $9,400 Total $75,100 $75,100