Journalizing and Posting Transactions and Preparing a Trial

Journalizing and Posting Transactions, and Preparing a Trial Balance and Adjustments B. Lougee opened Lougee Roofing Service on April 1, 2015. Transactions for April are as follows: Apr. 1 Lougee contributed $11,500 cash to the business in exchange for common stock P3-40. 1 Paid $2,880 cash for two-year premium toward liability insurance effective immediately. 2 Paid $6,100 cash for the purchase of a used truck 2 Purchased $3,100 of ladders and other equipment; paid $1,000 cash, with the balance due in 30 days. Purchased S1,200 of supplies on account. 5 Received an advance of $1,800 cash from a customer for roof repairs to be done during April and May. 12 Billed customers $5,500 for roofing services performed.

Solution

B.Lougee Journal Entries April 30th Date Particular Amount (DR) Amount(Cr) 1-Apr Cash $         11,500.00      To Common Stock $                      11,500.00 (Being amount contributed by Lougee in exchange of common stock 1-Apr Prepaid Insurance $            2,880.00      To Cash $                        2,880.00 (Being amount paid for 2 years insurance) 2-Apr Used Truck $            6,100.00    To Cash $                        6,100.00 (Being amount paid for purchase of used truck) 2-Apr Ladder & Other Equipment $            3,100.00     To Cash $                        1,000.00     To Accounts Payable $                        2,100.00 (Being amount of purchase of ladder & Other Equipment) 5-Apr Supplies $            1,200.00       To Accounts Payable $                        1,200.00 (Being amount of Purchased of Supplies on account) 5-Apr Cash $            1,800.00      To Unearned Service Revenue $                        1,800.00 (Being amount received in advance for service performed in April and May) 12-Apr Accounts Receivable $            5,500.00       To Service Revenue $                        5,500.00 (Being amount due for service performed ) 18-Apr Cash $            4,900.00     To Accounts Receivable $                        4,900.00 (Being amount received from customers) 29-Apr Fuel Expenses $               675.00      To Cash $                            675.00 (Being amount paid for fuel expenses) 30-Apr Advertisement Expenses $               100.00     To Cash $                            100.00 (Being amount of Adverisement Expenses) 30-Apr Wages $            2,500.00     To Cash $                        2,500.00 (Being amount paid to assistant wages) 30-Apr Accounts Receivable $            4,000.00       To Service Revenue $                        4,000.00 (Being amount due for service performed ) 30-Apr Supplies Expenses=($1200-$400) $               800.00      To Supplies $                            800.00 (Being amount of Supplies Expenses) 30-Apr Depreciation-Truck $               125.00     To Accumulated Depreciation $                            125.00 (Being amount of Depreciation expense) 30-Apr Depreciation-Equipment $                  35.00      To Accumulated Depreciation $                              35.00 (Being amount of Depreciation expense) 30-Apr Unearned Service Revenue =($1800*1/4) $               450.00     To Service Revenue $                            450.00 (Being amount of Unearned service revenue) 30-Apr Insurance=($2880/24) $               120.00     To Prepaid Insurance $                            120.00 (Being amount of insurance for the month of April) T-Accounts Cash A/c Particular Amount   Particular Amount To Common Stock $         11,500.00 By Prepaid Insurance $      2,880.00 To Unearned Service Revenue $            1,800.00 By Used Truck $      6,100.00 To Accounts Receivable $            4,900.00 By Ladder &Other Equipment   $      1,000.00 By Fuel Expenses $         675.00 By Advertisement Exp $         100.00 By Wages Expenses $      2,500.00 By Bal C/d $      4,945.00 Total $         18,200.00 $   18,200.00 Common Stock Particular Amount   Particular Amount To Balance C/d $         11,500.00 By Cash $   11,500.00 Total $         11,500.00 Total $   11,500.00 Unearned Service Revenue Particular Amount   Particular Amount To Service Revenue $               450.00 By Cash $      1,800.00 To Balance C/d $            1,350.00 Total $            1,800.00 Total $      1,800.00 Service Revenue Particular Amount   Particular Amount To B alance C/d $            9,500.00 By Accounts Receivable $      5,500.00 By Accounts Receivable $      4,000.00 By Unearned Service Revenue $         450.00 Total $            9,500.00 Total $      9,500.00 Accounts Payable Particular Amount   Particular Amount To B alance C/d $            3,300.00 By Ladder & Equipent $      2,100.00 By Supplies $      1,200.00 Total $            3,300.00 Total $      3,300.00 Ladder & Other Equipment Particular Amount   Particular Amount To Cash $            1,000.00 By Balance C/d $      3,100.00 To Accounts Payable $            2,100.00 Total $            3,100.00 Total $      3,100.00 Used Truck Particular Amount   Particular Amount To Cash $            6,100.00 By Balance C/d $      6,100.00 Total $            6,100.00 Total $      6,100.00 Accumulated Depreciation-Truck Particular Amount   Particular Amount To Balance C/d $               125.00 By Depreciation $         125.00 Total $               125.00 Total $         125.00 Accumulated Depreciation-Ladder & Other Equipment Particular Amount   Particular Amount To Balance C/d $                  35.00 By Depreciation $            35.00 Total $                  35.00 Total $            35.00 Depreciation Particular Amount   Particular Amount To Balance C/d $                  35.00 By Depreciation $            35.00 Total $                  35.00 Total $            35.00 Supplies Particular Amount   Particular Amount To Accounts Payable $            1,200.00 By Supplies Expenses $         800.00 By Balance C/d $         400.00 Total $            1,200.00 Total $      1,200.00 Supplies Expenses Particular Amount   Particular Amount To Supplies $               800.00 By Balance C/d $         800.00 Total $               800.00 Total $         800.00 Wages Expenses Particular Amount   Particular Amount To Cash $            2,500.00 By Balance C/d $      2,500.00 Total $            2,500.00 Total $      2,500.00 Prepaid Insurance Particular Amount   Particular Amount To Cash $            2,880.00 By Insurance $         120.00 By Balance C/d $      2,760.00 Total $            2,880.00 Total $      2,880.00 Advertisement Expenses Particular Amount   Particular Amount To Cash $               100.00 By Balance C/d $         100.00 Total $               100.00 Total $         100.00 Fuel Expenses   Particular Amount   Particular Amount To Cash $               675.00 By Balance C/d $         675.00 Total $               675.00 Total $         675.00 Accounts Receivable Particular Amount   Particular Amount To Service Revenue $            5,500.00 By Cash $      4,900.00 To Service Revenue $            4,000.00 By Balance C/d $      4,600.00 Total $            9,500.00 Total $      9,500.00 B.Lougee Uadjusted Trial Balance April 30th Heads   Debit Credit Cash $            4,945.00 Accounts Receivable $            4,600.00 Prepaid Insurace $            2,880.00 Supplies $            1,200.00 Used Truck $            6,100.00 Ladder & Other Equipment $            3,100.00 Accounts Payable $                        3,300.00 Common Stock $                      11,500.00 Unearned Revenue $                        1,800.00 Service Revenue $                        9,500.00 Advertising Expenses $               100.00 Wages Expense $            2,500.00 Fuel Expense $               675.00 Total $         26,100.00 $                      26,100.00 B.Lougee Adjusted Trial Balance April 30th Heads   Debit Credit Cash $            4,945.00 Accounts Receivable $            4,600.00 Prepaid Insurace=($2880-$120) $            2,760.00 Supplies $               400.00 Used Truck $            6,100.00 Ladder & Other Equipment $            3,100.00 Accumulated Depreciation-Truck $                            125.00 Accumulated Depreciation-Equipment $                              35.00 Accounts Payable $                        3,300.00 Common Stock $                      11,500.00 Supplies Expenses $               800.00 Unearned Revenue=($1800-$450) $                        1,350.00 Service Revenue $                        9,950.00 Advertising Expenses $               100.00 Depreciation Expense=($125+$35) $               160.00 Wages Expense $            2,500.00 Fuel Expense $               675.00 Insurance Expense $               120.00 Total $         26,260.00 $                      26,260.00