Roth contractors corporation income statement

Required

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.

Transactions Pt. A

2019

December Transactions Amount

a. Issued common stock for cash 2,000

b. Paid cash for three month's rent: December 2019, January and February 2020 2,400

c. Purchased a used truck on credit (recorded as an account payable) 13,000

d. Purchased supplies on credit. These are expected to be used during the month (recorded as expense) 1,600

e. Paid for a one-year truck insurance policy, effective December 1 2,280

f. Billed a customer for work completed to date 6,000

g. Collected cash for work completed to date 4,000

h. Paid the following expenses in cash:

Advertising 700

Interest 700

Telephone 800

Truck operating 600

Wages 5,000

i. Collected part of the amount billed in f above 1,000

j. Billed customers for work completed to date 7,000

k. Signed a contract for work to be performed in January 2020 9000 5,000

l. Paid the following expenses in cash:

Advertising 600

Interest 600

Truck operating 900

Wages 2,000

m. Collected an advance on work to be done in January (the policy of the coproration is to record such advances as revenue at the the time they are received)

2,000

n. Received a bill for electricity used during the month (recorded as utilities expense) 800

Adj. Entries Pt. B

2019

December Adjusting Entries Amount

o. One month of the prepaid insurance has expired. $170

p. The December portion of the rent paid on December 1 has expired. $900

q. Counted supplies and found this amount still on hand (recorded the amount used as an expense) $100

r. The amount collected in transaction m is unearned at December 31. $2,000

s. Three days of wages for December 29, 30, and 31 are unpaid. These will be paid in January.

$2,900

t. One month of depreciation needs to be recorded. Estimated useful life of truck in years is: 361.1111111111 3

u. Income taxes expense to be paid in the next fiscal year. $100

T-accounts

Roth Contractors Corporation

Cash Accounts Payable Repair Revenue Rent Expense

Supplies Expense

Accounts Receivable Wages Payable Advertising Expense

Telephone Expense

Unearned Repair Revenue

Prepaid Insurance

Income Taxes Payable Depreciation Exp. - Truck Truck Operating Expense

Prepaid Rent

Common Stock Insurance Expense

Utilities Expense

Unused Supplies

Interest Expense

Wages Expense

Truck

Acc. Dep'n - Truck Income Taxes Expense

Jnl. Entries

Roth Contractors Corporation

GENERAL JOURNAL

Dec.

2019 Description F Debit Credit

Roth Contractors Corporation

GENERAL JOURNAL

Dec.

2019 Description F Debit Credit

Roth Contractors Corporation

GENERAL JOURNAL

Dec.

2019 Description F Debit Credit

Adj. Trial Bal.

Roth Contractors Corporation

Adjusted Trial Balance

At December 31, 2019

Post-closing Trial Balance

Accounts Balances Closing Entries

Account Title Debit Credit # Debit Credit # Debit Credit

Cash

Accounts Receivable

Prepaid Insurance

Prepaid Rent

Unused Supplies

Truck

Accum. Dep'n. - Truck

Accounts Payable

Wages Payable

Income Taxes Payable

Unearned Revenue

Common Stock

Retained Earnings

Income Summary

Repair Revenue

Advertising Expense

Dep'n. Expense - Truck

Insurance Expense

Interest Expense

Rent Expense

Supplies Expense

Telephone Expense

Truck Operating Expense

Utilities Expense

Wages Expense

Income Taxes Expense

Statements

Roth Contractors Corporation Roth Contractors Corporation

Income Statement Balance Sheet

For the Month Ended Dec. 31, 2019 At December 31, 2019

Revenue Assets

Expenses

Liabilities

Roth Contractors Corporation

Statement of Changes in Equity Stockholders' Equity

For the Month Ended December 31, 2019

Common stock Retained earnings Total equity

Opening balance

Ending balance

Copyright

Copyright © 2018 David Annand

Published by David Annand

Box 308, Rochester AB T0G 1Z0

ISBN: 978-0-9953266-6-8

Library and Archives Canada Cataloguing in Publication

Annand, David, 1954–

This case is licensed under a Creative Commons License, Attribution–Non-commercial–Share Alike 4.0 USA see www.creativecommons.org. This material may be reproduced for non-commercial purposes and changes may be used by others provided that credit is given to the author.

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First US Edition

July 31, 2018