Textbook Problem

Exercise 2-52 Accounting Cycle

Rosenthal Decorating Inc. is a commercial painting and decorating contractor that began operations in January 2019. The following transactions occurred during the year:

1. On January 15, Rosenthal sold shares Of its common stock to William Hensley for $10,000
2. On January 24, Rosenthal purchased S720 of painting supplies from Westwood Builders' Supply Company on account.
3. On February 20, Rosenthal paid S720 cash to Westwood Builders' Supply Company for the

painting supplies purchased on January 24.

1. On April 25, Rosenthal billed Bultman Condominiums $12,500 for painting and decorating services performed in April.
2. On May 12, Rosenthal received $12,500 from Bultman Condominiums for the painting and decorating work billed in April.
3. On June 5, Rosenthal sent Arlington Builders a $9,500 bill for a painting job completed on that day.
4. 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.
2. Post the transactions to T-accounts.
3. Prepare a trial balance at June 30, 2019.