P3-49. 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. Required a. Set up T-accounts for the following accounts: cash, accounts receivable, supplies, prepaid insurance, trucks, accumulated depreciation-trucks, equipment, accumulated depreciation equipment, ac- counts payable, unearned roofing fees, common stock, roofing fees eamed, fuel expense, advertising expense, wages 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, 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. D Balance Sheet Used Feesome Stod Fees Earned FedExpAdvent Exp Wapes Ex In Expipl Dep Exp.I. DepExpE Y Z AA AAC Lo Stament Eamed Capital Revenue Expenselet Income Tak Cash AR Supplies Prepd ins Trucks Tee Depo Equip.ce Dep-Equ- AP 1-Apr 2-Apr 2. Ape 3-Apr S-Apr 5-Apr 12-Apr 18. Apr 29-Ape 30-Apr 30 Apr 30-Apr Adjustments: Inace expen Supplies espere Depreciation comp--Trucks Depreciation exp-equipment Roofing fees eamed