ACCOUNTING CYCLE Rosenthal Decorating, Inc., is a commercial painting and decorating contractor that began operations in January 2009. The following transactions occurred during the year:

a. On January 15, Rosenthal sold 500 shares of its common stock to William Hensley for $10,000.

b. On January 24, Rosenthal purchased $720 of painting supplies from Westwood Builders’ Supply on account.

c. On February 20, Rosenthal paid $720 cash to Westwood Builders’ Supply for the painting supplies purchased on January 24.

d. On April 25, Rosenthal billed Bultman Condominiums $12,500 for painting and decorating services performed in April.

e. On May 12, Rosenthal received $12,500 from Bultman Condominiums for the painting and decorating work billed in April.

f. On June 5, Rosenthal sent Arlington Builders a $9,500 bill for a painting job completed on that day.

g. On June 24, Rosenthal paid wages for work performed during the preceding week in the amount of $6,700.

Required:

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

. Post the transactions to T-accounts.

. Prepare a trial balance at June 30, 2009.

Exercise