Question

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

Transactions:
Jan.	15	Rosenthal sold 500 shares of its common stock to WilliamHensley for $10,000.
	24	Rosenthal purchased $720 of painting supplies from Westwood Builders’ Supply Company on account.
Feb.	20	Rosenthal paid $720 cash to Westwood Builders’ Supply Company for the painting supplies purchased on January 24.
Apr.	25	Rosenthal billed Bultman Condominiums $12,500 for painting and decorating services performed in April.
May	12	Rosenthal received $12,500 from Bultman Condominiums for the painting and decorating work billed in April.
Jun.	5	Rosenthal sent Arlington Builders a $9,500 bill for a painting job completed on that day.
Jun.	24	Rosenthal paid wages for work performed during the preceding week in the amount of $6,700.

	Required:
1.	Prepare a journal entry for each of the transactions.
2.	Post the transactions to T-accounts.
3.	Prepare a trial balance at June 30, 2019. CHART OF ACCOUNTS Rosenthal Decorating Inc. General Ledger ASSETS 111 Cash 121 Accounts Receivable 122 Notes Receivable 123 Supplies 124 Prepaid Insurance 125 Prepaid Rent 126 Inventory 131 Land 132 Buildings 133 Equipment 134 Furniture 135 Trucks 139 Accumulated Depreciation LIABILITIES 211 Accounts Payable 212 Notes Payable 213 Income Taxes Payable 214 Wages Payable 215 Utilities Payable 216 Insurance Payable 217 Interest Payable 218 Rent Payable 219 Unearned Service Revenue 231 Bonds Payable EQUITY 311 Common Stock 321 Retained Earnings 331 Dividends REVENUE 411 Sales Revenue 412 Service Revenue 413 Interest Income EXPENSES 511 Cost of Goods Sold 512 Advertising Expense 513 Supplies Expense 514 Utilities Expense 515 Rent Expense 516 Insurance Expense 517 Repairs and Maintenance Expense 521 Wages Expense 531 Interest Expense 532 Depreciation Expense 533 Income Taxes Expense X General Journal 1. Prepare a journal entry of the transactions on Rosenthal Decorating Inc. Post the transactions to T-accounts. 3. Prepare a trial balance at June 30, 2019. none X Chart Of Accounts CHART OF ACCOUNTS Rosenthal Decorating Inc. General Ledger ASSETS 111 Cash 121 Accounts Receivable 122 Notes Receivable 123 Supplies 124 Prepaid Insurance 125 Prepaid Rent 126 Inventory 131 Land 132 Buildings 133 Equipment 134 Furniture 135 Trucks 139 Accumulated Depreciation LIABILITIES 211 Accounts Payable 212 Notes Payable 213 Income Taxes Payable 214 Wages Payable 215 Utilities Payable 216 Insurance Payable 217 Interest Payable 218 Rent Payable 219 Unearned Service Revenue 231 Bonds Payable EQUITY 311 Common Stock 321 Retained Earnings 331 Dividends REVENUE 411 Sales Revenue 412 Service Revenue 413 Interest Income EXPENSES 511 Cost of Goods Sold 512 Advertising Expense 513 Supplies Expense 514 Utilities Expense 515 Rent Expense 516 Insurance Expense 517 Repairs and Maintenance Expense 521 Wages Expense 531 Interest Expense 532 Depreciation Expense 533 Income Taxes Expense none X General Journal 1. Prepare a journal entry of the transactions on Rosenthal Decorating Inc. 2) Post the transactions to the t acccount 3)prepare a trial balance at june 30 2019

Answer 1

Rosenthal		Journal Entries
Date	GL	Account	Debit	Credit
Jan 15th	111	Cash	10,000.00
	311	Common Stock		10,000.00
		(being 500 common shares sold to William Hensley.)
Jan 24th	123	Supplies	720.00
	211	Accounts Payable		720.00
		(being painting supplies purchased from Westwood Builders’ Supply Company on account.)
Feb 20th	211	Accounts Payable	720.00
	111	Cash		720.00
		(being full payment paid to Westwood Builders’ Supply Company)
April 25th	121	Accounts Receivable	12,500.00
	412	Service Revenue		12,500.00
		(being Bultman Condominiums were billed for painting and decorating services performed)
May 12th	111	Cash	12,500.00
	121	Accounts Receivable		12,500.00
		(being full payment received from Bultman Condominiums)
Jun 5th	121	Accounts Receivable	9,500.00
	412	Service Revenue		9,500.00
		(being Arlington Builders were billed for a painting job.)
Jun 24th	521	Wages Expense	6,700.00
	111	Cash		6,700.00
		(being wages paid.)

GL 111- Cash
Date	GL	Account	Debit	Credit	Balance
Jan 15th	311	Common Stock	10,000.00		10,000.00
Feb 20th	211	Accounts Payable		720.00	9,280.00
May 12th	121	Accounts Receivable	12,500.00		21,780.00
Jun 24th	521	Wages Expense		6,700.00	15,080.00
GL 311- Common Stock
Date		Account	Debit	Credit	Balance
Jan 15th	111	Cash		10,000.00	10,000.00
GL 123- Supplies
Date		Account	Debit	Credit	Balance
Jan 24th	211	Accounts Payable	720.00		720.00
GL 211- Accounts Payable
Date		Account	Debit	Credit	Balance
Jan 24th	123	Supplies		720.00	720.00
Feb 20th	111	Cash	720.00		-
GL 121- Accounts Receivable
Date		Account	Debit	Credit	Balance
April 25th	412	Service Revenue	12,500.00		12,500.00
May 12th	111	Cash		12,500.00	-
Jun 5th	412	Service Revenue	9,500.00	-	9,500.00
GL 412- Service Revenue
Date		Account	Debit	Credit	Balance
April 25th	121	Accounts Receivable		12,500.00	12,500.00
Jun 5th	121	Accounts Receivable		9,500.00	22,000.00
GL 521- Wages Expense
Date		Account	Debit	Credit	Balance
Jun 24th	111	Cash	6,700.00		6,700.00

	Trial Balance	Debit	Credit
111	Cash	15,080.00
311	Common Stock		10,000.00
123	Supplies	720.00
211	Accounts Payable		-
121	Accounts Receivable	9,500.00
412	Service Revenue		22,000.00
521	Wages Expense	6,700.00
	Total	32,000.00	32,000.00

	Income Statement
	Particulars	Amount
412	Service Revenue	22,000.00
	Expenses
521	Wages Expense	6,700.00
	Total Expenses	6,700.00
	Net Income	15,300.00

	Balance Sheet	Amount
111	Cash	15,080.00
121	Accounts Receivable	9,500.00
123	Supplies	720.00
	Total Assets	25,300.00
211	Accounts Payable	-
	Total Liabilities	-
311	Common Stock	10,000.00
321	Retained Earnings	15,300.00
	Total Equity	25,300.00
	Total Liabilities & Equity	25,300.00

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