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 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 towards 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 customer $4,000 for roofing services performed.

30 Declared dividends of $600 and paid $300.

Required:

a. Set up T-accounts for the following accounts: cash, accounts receivable, supplies, prepaid

insurance, truck, accumulated depreciation-trucks, equipment, accumulated depreciationequipment,

accounts payable, unearned roofing fees, common stock, roofing fees earned, fuel

expense, advertising expense, wage 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.

f. Prepare the income statement and the statement of stockholder equity for the month of April and

the balance sheet as of April 30th. Assume zero taxes.