Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Transaction Entries, Posting, Trial Balance, and Adjusting Entries Markt $11,600 6,200 3,200 Ladd contributed his personal funds in exchange for common stock to begin the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Transaction Entries, Posting, Trial Balance, and Adjusting Entries Markt $11,600 6,200 3,200 Ladd contributed his personal funds in exchange for common stock to begin the business. Purchased a used truck for cash. Purchased ladders and other equipment for a 3 total of Paid cash of $1,100, with the balance due in 30 days. 4 Paid two-year premium on liability insurance. 5 Purchased supplies on account Received an advance payment from a customer 6 for roof repair work to be done in April and May. Billed customers for roofing services. 8 Collected on account from customers. 9 Paid bill for truck fuel used in April. 10 Paid April newspaper advertising. 11 Paid assistants' wages. 12 Billed customers for roofing services. 2,880 1,300 1,900 5,600 5,000 85 200 2,600 4,100 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; Advertisin 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 equipmer and roofing fees earned. Supplies on hand on April 30 amounted to $500. Depreciation for April was $125 on the truck and 535 on the equipment. One-fourth of the roofing fee received in advance was earned by April 30. Post the adjusting entries. Date General Journal Description Post ref. Debit Credit April To record issuance of common stock. To record purchase of truck, To record purchase of equipment. Cash To record purchase of equipment. Paid two-year premium on liability insurance. To record supplies on account. Received advance payment for services To record billings for services. Collection on account from customers. To record fuel expense for truck. (10) Paid for April newspaper advertising. (11) Paid assistants wages. (12) Billed customers for service. Accounts Receivable My Sut Supplies Unearned Roofing Fees Bal Accounts Payable Common Stock Roofing Fees Earned Wages Expense (11) Fuel Expense Supplies Expense Depr. p.Trucks Depr. Exp-Equipment (16) Bal Fuel Expense (9) Supplies Expense Bal (14) Depr. Exp.-Trucks Bal (15) Bal Depr. Exp.-Equipment (16) Bal Advertising Expense Prepaid Insurance (10) Bal Insurance Expense (13) (13) Bal Bal Equipment (3) Bal Trucks Accum. Depr.-Trucks Accum. Depr.-Equipment (2) Bal (15) (16) Bal Bal Credit LADD ROOFING SERVICE Unadjusted Trial Balance April 30 Debit Cash Accounts Receivable Supplies Prepaid Insurance Trucks Equipment Accounts Payable Unearned Roofing Fees Common Stock Roofing Fees Earned Fuel Expense Advertising Expense Wages Expense Totals Date April General Journal Description Debit Post ref. (13) To record April insurance expense. (14) To record April supplies expense. (15) To coordination Date April General Journal Description Debit Post ref. (13) Credit To record April insurance expense. (14) To record April supplies expense. (15) To record April depreciation on trucks. (16) To record April depreciation on equipment. To record portion of advance payment earned in April. Date April General Journal Description Debit Post ref. (13) Credit To record April insurance expense. (14) To record April supplies expense. (15) To record April depreciation on trucks. (16) To record April depreciation on equipment. 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 with AI-Powered 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

Managerial Economics Theory Applications and Cases

Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield

8th edition

978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777

Students also viewed these Accounting questions