Mark Gold opened Gold Roofing Service on April 1. Transactions for April are as follows: 1...

Transcribed Image Text:

Mark Gold opened Gold Roofing Service on April 1. Transactions for April are as follows: 1 Gold contributed his personal funds in exchange for common stock to begin the business. $15,000 2 Purchased a used truck for cash. 6,100 3 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. 6,000 5 Purchased supplies on account 1,200 6 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. 9,000 8 Collected on account from customers. 6,500 9 Paid bill for truck fuel used in April. 10 Paid April newspaper advertising. 11 Paid assistants' wages. 75 100 12 Billed customers for roofing services. 4,500 5,000 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; 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 $950. Depreciation for April was $155 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. Cash Accounts Receivable Supplies (1) 15,000 (2) 0 6,100 (7) 9,000 05 (5) 1,200 0 (6) 0 Unearned Roofing Fees 1,800 (8) 0 6,500 (14) 0 0x (17) 0x (3) 0 1,000- (12) 5,000 0 Bal 1,200 x 0 Bal 0 0 1,800 x (4) 0 v 6,000- Bal 7,500 0 (6) 1,800 0 (8) 6,500 0 (9) 0 75-> (10) 0 100 - (11) 0 4,500 Bal 5,525 03 Accounts Payable Common Stock Roofing Fees Earned Wages Expense (3) 0 2,100 (1) 0 15,000 (7) (5) 0 1,200 Bal 0 15,000 (12) 0 01 9,000 5,000 (11) 4,500 0 Bal 4,500 0 Bal 0 3,300 (17) 0 0x Bal 0 14,000 x Fuel Expense Supplies Expense Depr. Exp.-Trucks Depr. Exp.-Equipment (9) Bal 75 0 (14) 1,200 x (15) 0x 0 (16) 0x 0 75 0 Bal 1,200x 0 Bal 0x 0 Bal 0x 0 Advertising Expense Prepaid Insurance Insurance Expense Equipment (10) Bal 0x (4) 6,000 0 (13) 0x 0 (3) 3,100 0 0x 0 (13) 0 0x Bal 0x 0 Bal 3,100 0 Bal 6,000 x 0 Trucks Accum. Depr.-Trucks Accum. Depr.-Equipment (2) 6,100 0 (15) 0 0x (16) 0x Bal 6,100 01 Bal 0 0x Bal 0 0x Mark Gold opened Gold Roofing Service on April 1. Transactions for April are as follows: 1 Gold contributed his personal funds in exchange for common stock to begin the business. $15,000 2 Purchased a used truck for cash. 6,100 3 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. 6,000 5 Purchased supplies on account 1,200 6 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. 9,000 8 Collected on account from customers. 6,500 9 Paid bill for truck fuel used in April. 10 Paid April newspaper advertising. 11 Paid assistants' wages. 75 100 12 Billed customers for roofing services. 4,500 5,000 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; 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 $950. Depreciation for April was $155 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. Cash Accounts Receivable Supplies (1) 15,000 (2) 0 6,100 (7) 9,000 05 (5) 1,200 0 (6) 0 Unearned Roofing Fees 1,800 (8) 0 6,500 (14) 0 0x (17) 0x (3) 0 1,000- (12) 5,000 0 Bal 1,200 x 0 Bal 0 0 1,800 x (4) 0 v 6,000- Bal 7,500 0 (6) 1,800 0 (8) 6,500 0 (9) 0 75-> (10) 0 100 - (11) 0 4,500 Bal 5,525 03 Accounts Payable Common Stock Roofing Fees Earned Wages Expense (3) 0 2,100 (1) 0 15,000 (7) (5) 0 1,200 Bal 0 15,000 (12) 0 01 9,000 5,000 (11) 4,500 0 Bal 4,500 0 Bal 0 3,300 (17) 0 0x Bal 0 14,000 x Fuel Expense Supplies Expense Depr. Exp.-Trucks Depr. Exp.-Equipment (9) Bal 75 0 (14) 1,200 x (15) 0x 0 (16) 0x 0 75 0 Bal 1,200x 0 Bal 0x 0 Bal 0x 0 Advertising Expense Prepaid Insurance Insurance Expense Equipment (10) Bal 0x (4) 6,000 0 (13) 0x 0 (3) 3,100 0 0x 0 (13) 0 0x Bal 0x 0 Bal 3,100 0 Bal 6,000 x 0 Trucks Accum. Depr.-Trucks Accum. Depr.-Equipment (2) 6,100 0 (15) 0 0x (16) 0x Bal 6,100 01 Bal 0 0x Bal 0 0x