Refer to the information in P3-43.

Required

a. Use the financial statement effects template to record the transactions for April.

b. Use the financial statement effects template to record the adjustments at the end of April.

Q3-43

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 \(\$ 6,100\) cash for the purchase of a used truck.

2 Purchased \(\$ 6,200\) 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 \(\$ 5,500\) for roofing services performed.

18 Collected \$4,900 cash from customers toward their accounts billed on April 12.

29 Paid \(\$ 675\) cash for truck fuel used in April.

30 Paid \(\$ 100\) cash for April newspaper advertising.

30 Paid \(\$ 4,500\) cash for assistants' wages earned.

30 Billed customers \(\$ 4,000\) for roofing services performed.

Required

a. Set up T-accounts for 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.

b. Record these transactions for April using journal entries.

c. Post these entries to their T-accounts (reference transactions in T-accounts by date).

d. Prepare an unadjusted trial balance at April 30.

\(e\). Prepare entries to adjust the following accounts: Insurance Expense, Supplies Expense, Depreciation Expense-Trucks, Depreciation Expense-Equipment, and Roofing Fees Earned in journal entry form. Supplies still available on April 30 amount to \(\$ 200\). Depreciation for April was \(\$ 125\) on the truck and \(\$ 35\) on equipment. One-fourth of the roofing fee received on April 5, was earned by April 30 .

\(f\). Post adjusting entries to their T-accounts.