This is another homework problem with selected possible answers Accounting Cycle

Question

This is another homework problem with selected possible answers

Accounting Cycle Rosenthal Decorating Inc. is a commercial painting and decorating contractor that began operations in January 2013. The following transactions occurred during the year: On January 15, Rosenthal sold 500 shares of its common stock to William Hensley for $10,000. On January 24, Rosenthal purchased $720 of painting supplies from Westwood Builders' Supply Company on account. On February 20, Rosenthal paid $720 cash to Westwood Builders' Supply Company for the painting supplies purchased on January 24. On April 25, Rosenthal billed Bultman Condominiums $12,500 for painting and decorating services performed in April. On May 12, Rosenthal received $12,500 from Bultman Condominiums for the painting and decorating work billed in April. On June 5, Rosenthal sent Arlington Builders a $9,500 bill for a painting job completed on that day. On June 24, Rosenthal paid wages for work performed during the preceding week in the amount of $6,700. Prepare a journal entry for each of the transactions listed above.

Explanation / Answer

a)

Common stock Debit $ 10,000

William Hensley Credit $ 10,000

(Sale of Common stock to William Hensley)

b)

Painting Supplies Debit $720

Westwood Builders Credit $720

(Purchase of Painting supplies on credit from Westwood)

c)

Westwood Builders Debit $720

Cash A/c Credit         $720

(Payment of cash to the westwood )

d)

Bills receivable account Debit $12,500

Builtman Condominiums Credit $12,500

(Billed for $12500 for the service Completed with Builtman)

e)

Cash account Debit $12,500

Bills Recievable Credit $12,500

( Cash reveived from the Builtman against the bills receivable)

f)

Bills receivable debit $9,500

Arlinton Builders Credit $9,500

(Bill sent for the service completed)

g)

Wages A/c Debit $6,700

Cash A/c Credit $6,700

(Wages paid for the last week)

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.