Rosenthal Decorating, Inc., is a commercial painting and decorating contractor that began operations in January 2009. The
Question:
Rosenthal Decorating, Inc., is a commercial painting and decorating contractor that began operations in January 2009. The following transactions occurred during the year:
a. On January 15, Rosenthal sold 500 shares of its common stock to William Hensley for $10,000.
b. On January 24, Rosenthal purchased $720 of painting supplies from Westwood Builders’ Supply on account.
c. On February 20, Rosenthal paid $720 cash to Westwood Builders’ Supply for the painting supplies purchased on January 24.
d. On April 25, Rosenthal billed Bultman Condominiums $12,500 for painting and decorating services performed in April.
e. On May 12, Rosenthal received $12,500 from Bultman Condominiums for the painting and decorating work billed in April.
f. On June 5, Rosenthal sent Arlington Builders a $9,500 bill for a painting job completed on that day.
g. On June 24, Rosenthal paid wages for work performed during the preceding week in the amount of $6,700.
Required:
1. Prepare a journal entry for each of the transactions listed above.
2. Post the transactions to T-accounts.
3. Prepare a trial balance at June 30, 2009.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Step by Step Answer:
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger