Question

rosenthal decorating inc. is a commercial painting and decorating contractor that began operations in january. the following transactions occurred during the year: a. on january 15, rosenthal sold 500 shares of its common stock to william hensley for $14,000. 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 $40,700 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 $9,400. required: 1. prepare a journal entry for each of the transactions listed above. if an amount box does not require an entry, leave it blank. january 15 january 24 february 20 april 25 may 12

Explanation:

Answer:

(January 15)
Debit: Cash $14,000
Credit: Common Stock $14,000

(January 24)
Debit: Supplies $720
Credit: Accounts Payable $720

(February 20)
Debit: Accounts Payable $720
Credit: Cash $720

(April 25)
Debit: Accounts Receivable - Bultman Condominiums $40,700
Credit: Service Revenue $40,700

(May 12)
Debit: Cash $12,500
Credit: Accounts Receivable - Bultman Condominiums $12,500

(June 5)
Debit: Accounts Receivable - Arlington Builders $9,500
Credit: Service Revenue $9,500

(June 24)
Debit: Wages Expense $9,400
Credit: Cash $9,400