Question

Roth Contractors Corporation was incorporated on December 1, 2019 and had the following transactions during December: PART B

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 . 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 1 next fiscal year 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. Prepare all necessary adjusting entries. General ledger account numbers and descriptions are not necessary Post the entries to general ledger T-accounts and calculate balances. Prepare an adjusted trial balance at December 31. Assume the fiscal year-end is December 31, 2019. Prepare an income statement, statement of changes in equity, and balance 5. 6. 7. 8. Prepare closing entries and a post-closing trial balance at December 31, 2019 9.

Here are answers to part A along with the instructions.

Answer 1

	Roth Contractor
	Adjusted Entries
	Description	Debit	Credit
O	Insurance Expense	$               150.00
	To Prepaid Insurance		$                                                150.00
	(Being amount of Prepaid Insurance)
P	Rent Expenses	$               400.00
	To Prepaid Rent		$                                                400.00
	(Being amount of Prepaid Rent)
Q	Unused Supplies	$               350.00
	To Supplies Expense		$                                                350.00
R	Repair Revenue	$           2,000.00
	To Unearned Repair Revenue		$                                            2,000.00
	(Being amount of Repair Revenue)
S	Wages Expense	$           1,500.00
	To Wages Payable		$                                            1,500.00
	(Being amount of Wages Payable)
T	Depreciation Expense($10000/48 months)	$               208.00
	To Accumulated Depreciation-Truck		$                                                208.00
	(Being amount of Depreciation)
U	Income Tax Expense	$               500.00
	To Income Tax Payable		$                                                500.00
	(Being amount of Income Tax Expense)
	T-Accounts
	Unused Supplies
	Particular	Debit	Credit	Balance
q)	Supplies Expense	$               350.00		$                   350.00
	Accumulated Depreciation
	Particular	Debit	Credit	Balance
T)	Depreciation		$                                                208.00	$                   208.00
	Wages Payable
	Particular	Debit	Credit	Balance
S)	Wages Expense		$                                            1,500.00	$                1,500.00
	Unearned Repair Revenue
	Particular	Debit	Credit	Balance
R)	Repair Revenue		$                                            2,000.00	$                2,000.00
	Income Tax Payable
	Particular	Debit	Credit	Balance
U	Income Tax Expense		$                                                500.00	$                   500.00
	Depreciation Expense
	Particular	Debit	Credit	Balance
T	Accumulated Depreciation		$                                                208.00	$                   208.00
	Insurance Expense
	Particular	Debit	Credit	Balance
O	Prepaid Insurance	$               150.00		$                   150.00
	Rent Expense
	Particular	Debit	Credit	Balance
P	Prepaid Rent	$               400.00		$                   400.00
	Income Tax Expense
	Particular	Debit	Credit	Balance
U	Income Tax Payable	$               500.00		$                   500.00
	Roth Contractor
	Adjusted Trial Balance
	Account Title	Debit	Credit
	Cash=($5000+$800+$2000+$2000-$1200-$1800-$3450-$3225)	$               125.00
	Accounts Receivable=($4500+$6500-$2000)	$           9,000.00
	Prepaid Insurance=($1800-$150)	$           1,650.00
	Prepaid Rent=($1200-$400)	$               800.00
	Unused Supplies=	$               350.00
	Truck	$         10,000.00
	Accumulated Depreciation-Truck=($10000/48)		$                                                208.00
	Accounts Payable=($10000+$1000+$100)		$                                          11,100.00
	Wages Payable		$                                            1,500.00
	Income Tax Payable		$                                                500.00
	Unearned Revenue		$                                            2,000.00
	Share Capital		$                                            5,000.00
	Repair Revenue		$                                          11,800.00
	Advertising Expense=($350+200)	$               550.00
	Depreciation	$               208.00
	Insurance	$               150.00
	Interest	$               250.00
	Supplies	$               650.00
	Rent	$               400.00
	Telephone Expense	$                 75.00
	Truck Operating Expense=($425+$375)	$               800.00
	Utilities Expense	$               100.00
	Wages Expense=($2500+$2500+$1500)	$           6,500.00
	Income Tax Expense	$               500.00
	Total	$         32,108.00	$                                          32,108.00