Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Transaction Entries, Posting, Trial Balance, and Adjusting Entries Mark Ladd opened Ladd Roofing Service on April 1. Transactions for April are as follows: 1 Ladd

image text in transcribed
Transaction Entries, Posting, Trial Balance, and Adjusting Entries Mark Ladd opened Ladd Roofing Service on April 1. Transactions for April are as follows: 1 Ladd contributed his personal funds in exchange for common stock to begin the business. $11,500 2 Purchased a used truck for cash. 6,100 Purchased ladders and other equipment for a total of 3,100 Paid cash of $1,000, with the balance due in 30 days. 4 Paid two-year premium on liability insurance. 2,880 Purchased supplies on account 1,200 Received an advance payment from a customer for roof repair work to be done in April and May. 1,800 7 Billed customers for roofing services. 5,500 8 Collected on account from customers. 4,900 9 Paid bill for truck fuel used in April. 75 10 Paid April newspaper advertising. 100 11 Paid assistants' wages. 2,500 12 Billed customers for roofing services. 4,000 Required a. Set up a general ledger with the following accounts: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Trucks; Accumulated Depreciation-Trucks; Equipment; Accumulated Depreciation-Equipment; Accounts Payable; Unearned Roofing Fees; Common Stock; Retained Earnings; Roofing Fees Earned; Fuel Expense; Advertising Expense; Wages Expense; Insurance Expense; Supplies Expense; Depreciation Expense-Trucks; and Depreciation Expense-Equipment. b. Record these transactions in the general journal and post to the ledger accounts. c. Prepare an unadjusted trial balance as of April 30. d. Prepare the journal entries to adjust the books for insurance expense, supplies expense, depreciation expense on the truck, depreciation expense on the equipment, and roofing fees earned. Supplies on hand on April 30 amounted to $400. Depreciation for April was $125 on the truck and $35 on the equipment. One-fourth of the roofing fee received in advance was earned by April 30. Post the adjusting entries. Journal Entries T-Accounts Unadjusted Trial Balance Adjusted Journal Entries General Journal Date Description Post ref. Debit Credit April (13 O 0 To record April insurance expense (14 O 0 O To record April supplies expense. (15 O O 0 O To record April depreciation on trucks. (16) O To record April depreciation on equipment. (17) o 0 To record portion of advance payment earned in April

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel

17th edition

1119503663, 1119571480, 1-119-50368-2, 111950368X, 978-1119503668

More Books

Students also viewed these Accounting questions

Question

Calculate V o and I o in the circuit of Fig. 2.99. 30 70 200 V 20 5

Answered: 1 week ago