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 $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 a 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.

Apr. 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 the journal entries from part

b. to their T-accounts (reference transactions in T-accounts by date).

d. Prepare journal entries to adjust the following accounts: insurance expense, supplies expense, depreciation expense—trucks, depreciation expense—equipment, and roofing fees earned. 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.

e. Post the adjusting journal entries from part

d. to their T-accounts.