ACC$111-$ Exam One

Roth Contractors Corporation was incorporated on December $1,2019$

and had the following transactions during December:

Part A

a$.$ Issued common stock for $$5,000$ cash

b$.$ Paid $$1,200$ cash for three months$$ rent: December $2019$;

January and February $2020$

c$.$ Purchased a used truck for $$10,000$ on credit $($recorded as an

account payable$)$

d$.$ Purchased $$1,000$ of supplies on credit. These are expected to

be used during the month $($recorded as expense$)$

e$.$ Paid $$1,800$ for a one$-$year truck insurance policy, effective

December $1$

f$.$ Billed a customer $$4,500$ for work completed to date

g$.$ Collected $$800$ for work completed to date

h$.$ Paid the following expenses in cash: advertising, $$350$; interest,

$$100$; telephone, $$75$; truck operating, $$425$; wages, $$2,500$

i$.$ Collected $$2,000$ of the amount billed in f above

j$.$ Billed customers $$6,500$ for work completed to date

k$.$ Signed a $$9,000$ contract for work to be performed in January

$2020$

l$.$ Paid the following expenses in cash: advertising, $$200$; interest,

$$150$; truck operating, $$375$; wages, $$2,500$

m$.$ Collected a $$2,000$ advance on work to be done in January $($the

policy of the corporation is to record such advances as revenue

at the time they are received$)$

n$.$ Received a bill for $$100$ for electricity used during the month

$($recorded as utilities expense$).$

Required:

$1.$ Open general ledger T$-$accounts for the following: Cash, Accounts

Receivable, Prepaid Insurance, Prepaid Rent, Truck, Accounts

Payable, Common Stock, Repair Revenue, Advertising Expense,

Interest Expense, Supplies Expense, Telephone Expense, Truck

Operating Expense, Utilities Expense, and Wages Expense. General

ledger account numbers are not necessary.

$2.$ Prepare journal entries to record the December transactions.

General ledger account numbers and descriptions are not needed.

$3.$ Post the entries to general ledger T$-$accounts.