Boilermaker House Painting Company
1. Sep 3 Paint houses in the current month for $20,000 on account.
2. Sep 8 Purchase painting equipment for $21,000 cash.
3. Sep 12 Purchase office supplies on account for $3,500.
4. Sep 15 Pay employee salaries of $4,200 for the current month.
5. Sept 19 Purchase advertising to appear in the current month for $1,000 cash.
6. Sep 22 Pay office rent of $5,400 for the current month.
7. Sep 26 Receive $15,000 from customers in (1) above.
8. Sep 30 Receive cash of $6,000 in advance from a customer who plans to have his house painted in the following month.
a) Record each transaction. The company uses the following accounts: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Deferred Revenue, Common Stock, Retained Earnings, Service Revenue, Salaries Expense, Advertising Expense, Rent Expense.
b) Post each transaction to T-accounts and compute ending balance. The starting balances for the accounts are: Cash $26,100, Accounts Receivable $1,700, Supplies $500, Equipment $7,400, Accounts Payable $1,200, Common Stock $25,000, Retained Earnings $9,500. All others began with $0.
c) After calculating ending balance of each account, prepare a trial balance.