Boilermaker House Painting Company incurs the following transactions for September. 1. September 3 Paint houses in the current month for $18,000 on account.
2. September 8 Purchase painting equipment for $19,000 cash.
3. September 12 Purchase office supplies on account for $3,100.
4. September 15 Pay employee salaries of $3,800 for the current month.
5. September 19 Purchase advertising to appear in the current month for $1,200 cash.
6. September 22 Pay office rent of $5,000 for the current month.
7. September 26 Receive $13,000 from customers in (1) above.
8. September 30 Receive cash of $5,600 in advance from a customer who plans to have his house painted in the following month.
Required:
1. Prepare journal entries for the above transactions.
2. Post each transaction to T-accounts and calculate the ending balances.
At the beginning of September, the company had the following account balances:
Cash $17,100
Accounts Receivable 800
Supplies 320
Equipment 5,600
Accounts Payable 700
Common Stock 16,000
Retained Earnings 7,120.
All other accounts had a beginning balance of zero.
3. Prepare a trial balance.