Question

Ruberstein, Inc. was founded on April 1 and entered into the following transactions:
Apr. 1 Issued common stock to shareholders in exchange for cash, $20,000.
1 Purchased a delivery van (equipment), 513,000.
1 Purchased a one-year insurance policy to be consumed evenly over the next 12 months, $4,800.
1 Took out a loan from First Bank, $20,000.
6 Hired two new employees on salary of $1,000 a month each.
6 Received prepayment for a contracted job to be performed in May, $4,500.
7 Purchased office supplies on credit, $1,200.
8 Billed customers for services provided, $7,500.
12 Paid to have an ad placed on a billboard during April, $1,300.
18 Billed customers for services provided, $8,600.
24 Paid dividends to stockholders, $1,000.
30 Received utility bills for the month of April to be paid next month, $740.
30 Prepaid the next six months of rent starting with May, $3,600.
Additional Information:
1. April depreciation for the delivery van is $217.
2. Interest on the loan from the bank is paid annually at a rate of 6%.
3. An inventory count of office supplies at April 30 showed $500 of supplies on hand.
4. Prepaid insurance has expired.
5. Employees' salaries earned during April but to be paid in May, $2,000.
Required
a. Journalize the transactions for the month of April.
b. Post the journal entries to the general ledger using T-accounts.
c. Prepare a trial balance as of April 30.
d. Prepare all necessary adjusting journal entries and post the entries to the appropriate T-accounts.
e. Prepare an adjusted trial balance as of April 30.
f. Prepare an income statement and a statement of retained earnings for the month of April. Also prepare a classified balance sheet as of April 30.
g. Prepare all closing entries for the temporary accounts and post the entries to the appropriate T-accounts.
h. Prepare a post-closing trial balance as of April 30.


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  • CreatedJuly 16, 2015
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