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.

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

adjustments

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

trucks, accumulated depreciationtrucks, equipment, accumulated depreciationequipment, ac-

counts payable, unearned roofing fees, common stock, roofing fees earned, fuel expense, advertising

expense, wages expense, insurance expense, supplies expense, depreciation expensetrucks, and

depreciation expenseequipment.

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, de-

preciation expensetrucks, depreciation expenseequipment, 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

and answer the following questions

Question 1

Enter the ending Cash balance after all April entries have been made and Enter the Accounts Receivable balance for April after all entries have been made.

Do not use dollar signs or commas. Enter $10,000 as 10000, for example.

Question 2

Enter the sum of all Asset account balances after all April transactions and adjustments have been made.

Do not use dollar signs or commas. Enter $10,000 as 10000, for example.

Question 3

Enter the April 30 balance in Fees Earned after all transactions and adjustments have been recorded and what is the net income amount for April?

Do not use dollar signs or commas. Enter $10,000 as 10000, for example.