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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
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 1. 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). 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. 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. A B 3 Income Statement 4 5 5 7 3 1 O Nm * in 6 00 0 0 7 0 1, 3, 4 & 6 2 & 5 & 9 7 & 9 CO + 7 & 9 Adjusted Trial Balance Debit Credit Closing Entries Debit Credit Post-Closing Trial Balance Debit Credit Account Cash Accounts receivable Prepaid Insurance Prepaid Rent Unused supplies Truck Accumulated Depreciation-Truck Accounts payable Wages payable Income taxes payable Unearned revenue Common Stock Retained earnings income surinary Repair revenue Advertising expense Depreciation Expense - Truck Insurance expense Interest expense Rent expense Supplies expense Telephone experte Truck Operating expense Utilities expense Wages expense Income taxes expense Totals 2 9 9 9 9 o
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