Question

PROBLEMS-SET A LO: P3-1A. Transaction Entries, Posting, Trial Balance, and Adjusting Entries Mark Gold opened Gold Roofing Service on April 1. Transactions for April are as follows: 1 Gold contributed $15,000 of his personal funds in exchange for common stock to begin the business. 2 Purchased a used truck for $6,100 cash. 3 Purchased ladders and other equipment for a total of $3,100, paid $1,000 cash, 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 of $1,800 from a customer for roof repair work to be done during April and May. 7 Billed customers for roofing services, $9,000. 8 Collected $6,500 on account from customers. 9 Paid bill for truck fuel used in April, $75. 10 Paid April newspaper advertising, $100. 11 Paid assistants' wages, $4,500. 12 Billed customers for roofing services, $5,000. Required a. Set up a general ledger with the following accounts: Cash; Accounts Receivable; Supplies; Pre- paid Insurance; Trucks; Accumulated Depreciation-Trucks; Equipment; Accumulated Depre- ciation Equipment; Accounts Payable; Unearned Roofing Fees: Common Stock; Roofing Fees Earned; Fuel Expense; Advertising Expense; Wages Expense; Insurance Expense; Supplies Ex- pense; 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.

Answer 1

DR. CASH CR. DR. COMMON STOCK CR. cr. 01-Apr 30-Apr 15,000 15,000 dr. TRUCK 02-Apr 30-Apr 6,100 6,100 01-Apr 06-Apr 08-Apr 15,000 1,800 6,500 DR. CR. 02-Apr 03-Apr Apr-04 Apr-09 Apr-10 Apr-11 6,100 1,000 6,000 75 100 4,500 1 ACCOUNT PAYABLE CR. 03-Apr Apr-05 Apr-30 2,100 1,200 3,300 DR. EQUIPMENT Apr-03 3,100 Apr-30 3,100 30-Apr *5,525 CR. DR. ROOFING FEES. dr. DR. PREPAID INSURANCE Apr-04 6,000 30-Apr 6,000 CR. Apr-07 Apr-12 Apr-30 UNEARNED ROOFING FEES. cr. 01-Apr 30-Apr 9,000 5,000 14,000 1,800 1,800 CR. DR. SUPPLIES Apr-05 30-Apr 1,200 1,200 DR. CR. 6,500 ADVERTISING EXPENSE Apr-10 100 30-Apr 100 DR. ACCOUNT RECEIVABLE CR. 07-Apr 9,000 08-Apr Apr-12 5,000 30-Apr 7,500 CR. DR. FUEL EXPENSES Apr-09 75 30-Apr 75 DR. CR. WAGES EXPENSE Apr-11 4,500 30-Apr 4,500

UNADJUSTED TRIAL BALANCE Credit $ Debit $ 5,525 7,500 6,100 3,100 - 1,200 6,000 Account title Cash Account receivable Truck Equipment Supplies Prepaid insurance Common stock Unearned roofing fees Roofing fees Account payable Fuel expenses Advertising expenses Wages expenses TOTAL 15,000 1,800 14,000 3,300 75 100 4,500 34,100 34,100