Question

Before you begin, print out all the pages in this workbook. Roth Contractors Corporation was incorporated on December 1, 2019. Required: Part A 1 Prepare journal entries to record the December transactions shown on page "Transactions Pt. A". General ledger account numbers and descriptions are not needed. 2 Post the entries to general ledger T-accounts. Part B 3 Prepare all necessary adjusting entries based on the information shown on the printed "Adj. Entries Pt. B" page. General ledger account numbers and descriptions are not necessary. 4 Post the entries to general ledger T-accounts and calculate balances. 5 Prepare an adjusted trial balance at December 31. 6 Prepare an income statement, statement of changes in equity, and balance sheet. Assume the fiscal year-end is December 31, 2019. 7 Prepare closing entries and a post-closing trial balance at December 31, 2019.

Answer 1

Prepare entries as follows:

Trn.	Account Titles	Debit	Credit
a	Cash	$2,000
	Common stock		$2,000
b	Prepaid Rent	$2,400
	Cash		$2,400
c	Truck	$13,000
	Accounts payable		$13,000
d	Supplies expense	$1,600
	Accounts payable		$1,600
e	Prepaid Insurance	$2,280
	Cash		$2,280
f	Accounts receivable	$6,000
	Repair revenue		$6,000
g	Cash	$4,000
	Accounts receivable		$4,000
h	Advertising expense	$700
	Interest expense	$700
	Telephone expense	$800
	Truck operating expense	$600
	Wages expense	$5,000
	Cash		$7,800
i	Cash	$1,000
	Accounts receivable		$1,000
j	Accounts receivable	$7,000
	Repair revenue		$7,000
k	No entry
l	Advertising expense	$600
	Interest expense	$600
	Truck operating expense	$900
	Wages expense	$2,000
	Cash		$4,100
m	Cash	$2,000
	Unearned Repair revenue		$2,000
n	Utilities expense	$800
	Accounts payable		$800
o	Insurance expense ($2280/12)	$190
	Prepaid Insurance		$190
p	Rent expense ($2400/3)	$800
	Prepaid rent		$800
r	No entry
s	Wages expense	$2,900
	Wages payable		$2,900
t	Depreciation expense-Truck	$361
	Accumulted depr. -Truck ($13000/36)		$361
u	Income tax expense	$100
	Income tax payable		$100