Accounting Cycle

Rosenthal Decorating Inc. is a commercial painting and decorating contractor that began operations in January 2013. The following transactions occurred during the year:

1. On January 15, Rosenthal sold 500 shares of its common stock to William Hensley for $10,000.
2. On January 24, Rosenthal purchased $720 of painting supplies from Westwood Builders' Supply Company on account.
3. On February 20, Rosenthal paid $720 cash to Westwood Builders' Supply Company for the painting supplies purchased on January 24.
4. On April 25, Rosenthal billed Bultman Condominiums $12,500 for painting and decorating services performed in April.
5. On May 12, Rosenthal received $12,500 from Bultman Condominiums for the painting and decorating work billed in April.
6. On June 5, Rosenthal sent Arlington Builders a $9,500 bill for a painting job completed on that day.
7. On June 24, Rosenthal paid wages for work performed during the preceding week in the amount of $6,700.