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.

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.

Part A, Requirement #3
After posting all transactions, please calculate the ending balance for each t-account. Then check your ending balances for each of the following accounts:
Cash $125	Accounts Receivable $9,000	Accounts Payable $11,100
Repair Revenue $13,800	Interest Expense $250	Wages Expense $5,000
****If the ending balances do not match, complete the following steps:
Check your math Verify that you have posted your transactions correctly Re-evaluate your journal entries

Part B, Requirement #6
After posting the adjusting entries, please calculate the ending balance for each t-account. Then check your ending balances for each of the following account:
Prepaid Revenue $800	Unearned Repair Revenue $2,000	Accum Depn Truck $208
Repair Revenue $11,800	Insurance Expense $150	Wages Expense $6,500
If the balances do not match, complete the following steps:
Check your math Verify that you have posted your transactions correctly Re-evaluate your journal entries

Part B, Requirement #7

After preparing the adjusted trial balance, the totals of the debit and credit columns should be $32,108

If the debit and credit column totals do not match, complete the following steps:

1. Check your math (add the columns from the bottom up if you continue to get the same totals)
2. Make sure that all accounts with general ledger balances have been moved to the adjusted trial balance
3. Verify that you have each amount in the correct column
4. Check each amount to ensure you have transferred the correct amount from each account

Part B, Requirement #7, #8

#7 (Income Statement) Net Income $1,617

#8 (Statement of Changes in Equity)

Common Stock $5,000; Retained Earnings $1,617; Total Equity $6,617

#8 (Balance Sheet)

Total Assets $21,717

Total Liabilities $15,100

Total Stockholders Equity $6,617

Part B, Requirement #9
TIP: Dont forget which accounts temporary and which ones are permanent. Remember, temporary accounts must have a ZERO balance after the closing process is complete.
Post-Closing Trial Balance Debit/Credit Totals $21,925
If the debit/credit total is incorrect, check the following account balances to verify that the amounts are correct. If the amounts are not correct, go back and check your work.
Prepaid Insurance $1,650	Unused Supplies $350	Acc dep Truck $208
Unearned repair revenue $2,000	Retained Earnings $1,617
To find errors:
Check your math Verify that balances were transferred correctly Check that the balances were placed in the correct debit/credit column