Rosenthal Decorating Inc. is a commercial painting and decorating contractor that began operationsin January 2019. The following transactions occurred during the year:a. On January 15, Rosenthal sold 500 shares of its common stock to WilliamHensley for $10,000.b. On January 24, Rosenthal purchased $720 of painting supplies from Westwood Builders’Supply Company on account.c. On February 20, Rosenthal paid $720 cash to Westwood Builders’ Supply Company for thepainting supplies purchased on January 24. d. On April 25, Rosenthal billed Bultman Condominiums $12,500 for painting and decoratingservices performed in April.e. On May 12, Rosenthal received $12,500 from Bultman Condominiums for the painting anddecorating work billed in April.f. On June 5, Rosenthal sent Arlington Builders a $9,500 bill for a painting job completed onthat day.g. On June 24, Rosenthal paid wages for work performed during the preceding week in theamount of $6,700.Required:1. Prepare a journal entry for each of the transactions.2. Post the transactions to T-accounts.3. Prepare a trial balance at June 30, 2019.
Rosenthal Decorating Inc. is a commercial painting and decorating contractor that began operationsin January 2019. The following transactions occurred during the year:a. On January 15, Rosenthal sold 500 shares of its common stock to WilliamHensley for $10,000.b. On January 24, Rosenthal purchased $720 of painting supplies from Westwood Builders’Supply Company on account.c. On February 20, Rosenthal paid $720 cash to Westwood Builders’ Supply Company for thepainting supplies purchased on January 24. d. On April 25, Rosenthal billed Bultman Condominiums $12,500 for painting and decoratingservices performed in April.e. On May 12, Rosenthal received $12,500 from Bultman Condominiums for the painting anddecorating work billed in April.f. On June 5, Rosenthal sent Arlington Builders a $9,500 bill for a painting job completed onthat day.g. On June 24, Rosenthal paid wages for work performed during the preceding week in theamount of $6,700.Required:1. Prepare a journal entry for each of the transactions.2. Post the transactions to T-accounts.3. Prepare a trial balance at June 30, 2019.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 1BD
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| Rosenthal Decorating Inc. is a commercial painting and decorating contractor that began operations in January 2019. The following transactions occurred during the year: a. On January 15, Rosenthal sold 500 shares of its common stock to WilliamHensley for $10,000. b. On January 24, Rosenthal purchased $720 of painting supplies from Westwood Builders’ Supply Company on account. c. On February 20, Rosenthal paid $720 cash to Westwood Builders’ Supply Company 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 2. 3. Prepare a |
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