Question

Journalizing and Posting Transactions and Adjustments D. Roulstone opened Roulstone Roofing Service on April 1. Transactions for April follow. Apr 1 Roulstone contributed $11.500 cash to the business in exchange for common stock. 2 Paid 56,100 cash for the purchase of a used truck. 2 Purchased 53.100 of ladders and other equipment the company paid $1.000 cash with the balance due in 30 days. 3 Paid $2,880 cash for two-year (or 24-month) premium toward liability insurance. 5 Purchased $1,200 of supplies on credit. 5 Received an advance of $1,800 cash from a customer for roof repairs to be done during April and May. 12 Billed customers 55,500 for roofing services performed 18 Collected 54,900 cash from customers toward their accounts billed on April 12 29 Paid 5675 cash for truck fuel used in April 30 Paid $100 cash for April newspaper advertisine 30 Paid $2.500 cash for assistants' wages earned. 30 Billed customers 54.000 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

Answer 1

Requirement b:

Date	Description	Debit	Credit
Apr.1	Cash	$11,500
	Common stock		$11,500
	[Owner invested cash]
Apr.2	Truck	$6,100
	Cash		$6,100
	[Purchased truck]
Apr.2	Equipment	$3,100
	Cash		$1,000
	Accounts payable		$2,100
	[Purchased equipment]
Apr.3	Prepaid insurance	$2,880
	Cash		$2,880
	[Purchase liability insurance]
Apr.5	Supplies	$1,200
	Accounts payable		$1,200
	[Purchased supplies]
Apr.5	Cash	$1,800
	Unearned roofing fees		$1,800
	[Received advanced payment for repair work]
Apr.12	Accounts receivable	$5,500
	Roofing fees earned		$5,500
	[Billed for services performed]
Apr.18	Cash	$4,900
	Accounts receivable		$4,900
	[Collected from customer billed on April 12.]
Apr.29	Fuel expense	$675
	Cash		$675
	[Paid for April fuel expense]
Apr.30	Advertising expense	$100
	Cash		$100
	[Paid for April newspaper advertising]
Apr.30	Wages expense	$2,500
	Cash		$2,500
	[Paid wages]
Apr.30	Accounts receivable	$4,000
	Roofing fees earned		$4,000
	[Recorded fees earned]

Requirement d:

Date	Description	Debit	Credit
Apr.30	Insurance expense (2880/24)	$120
	Prepaid insurance		$120
	[To record insurance expense]
Apr.30	Supplies expense [1200-400]	$800
	Supplies		$800
	[To record supplies expense]
Apr.30	Depreciation expense-Trucks	$125
	Accumulated depreciation-trucks		$125
	[To record truck depreciation expense]
Apr.30	Depreciation expense-equipment	$35
	Accumulted depreciation-equipment		$35
	[To record equipment depreciation]
Apr.30	Uneared roofing fees (1800/4)	$450
	Roofing fees earned		$450
	[To record fees earned]

Requirement c&e:

Cash					Accounts Receivable
Apr.1	$11,500	Apr.2	$6,100		Apr.12	$5,500	Apr.18	$4,900
Apr.5	$1,800	Apr.2	$1,000		Apr.30	$4,000
Apr.18	$4,900	Apr.3	$2,880
		Apr.29	$675		Supplies
		Apr.30	$100		Apr.5	$1,200	Apr.30	$800
		Apr.30	$2,500
					Prepaid insurance
Trucks					Apr.3	$2,880	Apr.30	$120
Apr.2	$6,100
					Equipment
Accumulated depreciation-Equipment					Apr.2	$3,100
		Apr.30	$35
					Accumulated depreciation-Trucks
Accounts payable							Apr.30	$125
		Apr.2	$2,100
		Apr.5	$1,200		Unearned Roofing Fees
					Apr.30	$450	Apr.5	$1,800
Roofing Fees Earned
		Apr.12	$5,500		Common stock
		Apr.30	$4,000				Apr.1	$11,500
		Apr.30	$450
					Depreciation Expense-Trucks
Advertising Expense					Apr.30	$125
Apr.30	$100
					Fuel Expense
Wages expense					Apr.29	$675
Apr.30	$2,500
					Depreciation expense-Equipment
Insurance Expense					Apr.30	$35
Apr.30	$120
					Supplies expense
					Apr.30	$800