Journalizing and Posting Transactions, and Preparing a Trial Balance and Adjustments

Roulstone opened Roulstone Roong 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 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 roong 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 roong services performed.

Required

a. Set up T-accounts for the following accounts: Cash; Accounts Receivable; Supplies; Prepaid

Insurance; Trucks; Accumulated DepreciationTrucks; Equipment; Accumulated Depreciation

Equipment; Accounts Payable; Unearned Roong Fees; Common Stock; Roong 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 these entries to their T-accounts (reference transactions in T-accounts by date).

d. Prepare an unadjusted trial balance at April 30.

e. Prepare entries to adjust the following accounts: Insurance Expense, Supplies Expense,

Depreciation ExpenseTrucks, Depreciation ExpenseEquipment, and Roong Fees Earned in

journal entry form. 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 roong fee received on April 5, was

earned by April 30.

f. Post adjusting entries to their T-accounts.