P3-43. Journalizing and Posting Transactions, and Preparing a Trial Balance and

Adjustments

(LO1, 2, 3)

D. 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.

P3-44. Assessing Financial Statement Effects of Transactions and Adjustments

(LO1, 2)

Refer to the information in P3-43.

Required

a. Use the nancial statement effects template to record the transactions for April.

b. Use the nancial statement effects template to record the adjustments at the end of April (described

in part e of P3-43).