ACC111 - 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 fabove j. Billed customers $6,500 for work completed to date k. Signed a $9,000 contract for work to be performed in January 2020 I. 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. Part B The following information relates to December 31, 2019: o. One month of the prepaid insurance has expired. p. The December portion of the rent paid on December 1 has expired. q. A physical count indicates that $350 of supplies is still on hand. r. The amount collected in transaction m is unearned at December 31. s. Three days of wages for December 29, 30, and 31 are unpaid, amounting to $1,500. These will be paid in January. t. The truck has an estimated useful life of 4 years. u. Income taxes expense is $500. This amount will be paid in the next fiscal year. Required: 4. Open additional general ledger T-accounts for the following: Unused Supplies, Accumulated Depreciation, Wages Payable, Unearned Revenue, Income Taxes Payable, Depreciation Expense, Insurance Expense, Rent Expense, and Income Taxes Expense. General ledger account numbers are not necessary. 5. Prepare all necessary adjusting entries. General ledger account numbers and descriptions are not necessary. 6. Post the entries to general ledger T-accounts and calculate balances. 7. Prepare an adjusted trial balance at December 31. 8. Assume the fiscal year-end is December 31, 2019. Prepare an income statement, statement of changes in equity, and balance sheet. 9. Prepare closing entries and a post-closing trial balance at December 31, 2019. Calibri Wages Expense fx A B CD 1., 3., 4., and 6.- Roth Contractors Corporation 14 BIUSA- E FG 1 J K L M N 1 2 3 Cash Accounts Payable Common Stock Repair Revenue Rent Expense 4 5 6 7 B 9 10 Accounts 11 Receivable Wages Payable Advertising Expense Telephone Expense 12 13 14 15 16 17 18 Prepaid Insurance Unearned Repair Revenue Depreciation Expense-Truck Truck Operating Expense 22 23 24 19 20 21 25 Prepaid Rent Income Taxes Payable Insurance Expense Utilities Expense 26 27 28 29 30 31 Unused Interest 32 Supplies Expense Wages Expense 1, 3, 4 & 6 2 & 5 & 9 7 & 9 8 fx 24 QQ Calibri 14 BIUSA- B C D E F G H I J K L M N Wages Expense A Income Taxes 25 Prepaid Rent Payable 26 27 28 29 30 # 31 Unused 32 33 Supplies 34 35 36 37 38 Insurance Expense Utilities Expense Interest Expense Wages Expense 39 Truck Income Taxes Expense Supplies Expense 40 41 42 43 44 45 46 Accumulated 47 Depreciation- 48 Truck 50 51 52 53 49 54 1, 3, 4 & 6 2 & 5 & 9 7 & 9 8 2 & 5 Date Description GENERAL JOURNAL PR Debit Page Credit Date Description Adjusting Entries PR Debit Credit Date Description Closing Entries PR Debit Page Credit Date Description PR Debit Page, Credit 7 & 9 Account Cash Accounts receivable Prepaid Insurance Prepaid Rent Unused supplies Truck Accumulated Depreciation-Truck Accounts payaable Wages payable Income taxes payable Unearned revenue Common Stock Retained earnings Income summary Repair revenue Advertising expense Depreciation Expense - Truck Insurance expense Interest expense Rent expense Supplies expense Telephone expense Truck Operating expense Utilities expense Wages expense Income taxes expense Totals Adjusted Trial Balance Debit Closing Entries Credit Debit Credit Debit Post-Closing Trial Balance Credit 8 Income Statement Statement of Changes in Equity Balance Sheet