Reference no: EM132531751
W. Weinstein, roofing contractor, began business on May 1 of the current year. The following transactions occurred during May:
1) Weinstein invested $25,000 of his personal funds in the business.
2) Purchased equipment on account, $2,400.
3) Paid the premium for a one-year liability insurance policy, $720.
4) Purchased supplies on account, $580.
5) Purchased a truck for $8,500; Weinstein paid $2,500 cash and gave a note payable for the balance.
6) Paid rent for May, $750.
7) Paid fuel bill for truck, $70.
8) Billed customers for services rendered, $9,200.
9) Paid $1,000 on account for equipment purchased in transaction (2).
10) Paid utilities expense for May, $120.
11) Received invoice for May advertising expense, to be paid in June, $150.
12) Paid employees' wages, $1,450.
13) Collected $5,300 on accounts receivable,
14) Withdrew $800 for personal expenses.
15) Counted supplies on hand at May 31; $320 worth remained,
16) Recorded the insurance expired at May 31, $60.
REQUIRED
Question (a) Record the above transactions in T accounts, and key entries with the numbers of the transactions. The following accounts will be needed to record the transactions for May:
Cash; Accounts Receivable; Supplies on Hand; Prepaid Insurance; Equipment, Truck; Notes Payable; Accounts Payable; Weinstein, Capital; Weinstein, Drawing; Service Fees; Rent Expense; Wages Expense; Utilities Expense; Truck Expense; Advertising Expense; Supplies Expense; and Insurance Expense.