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.

1., 3., 4, and 6 rati Accounts Common Repair Rent Supplies Wages Accounts Advertising Telephone Unearned Repair Truck Operating Prepaid ncome Taxes Depreciation Insurance Utilities Interest Wages Unused Income Taxes uck

2. GENERAL JOURNAL GENERALIOURNAL Date Description PRI Debit Credit Date Description PR Debit Credit

7 and 9 Adjusted Trial Balance Debit Credit Closing Entries Debit Post-closing Trial Balance Credit Debit Credit Cash Accounts receivable Prepaid Insurance Prepaid Rent Unused supplies Truck Acc. Dep. – truck Accounts payable Wages payable Income taxes payable Unearned revenue Retained earnings Income summary Repair revenue Advertising expense Dep. Exp. – truck Insurance expense Interest expense Rent expense Supplies expense Telephone expense Truck operating exp Utilities expense Wages expense Income taxes expense

8. Balance Sheet Income Statement Statement of Changes in Equity

GENERAL JOURNAL Page Date Description PR Debit Credit

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 d. e. Paid $1,800 for a one-year truck insurance policy, effective account payable) Purchased $1,000 of supplies on credit. These are expected to be used during the month (recorded as expense) 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, 575; truck operating, $425; wages, $2,500 i. Collected $2,000 of the amount billed in fabove j. Billed customers $6,500 for work completed to date k. Signed a $9,000 contract for work to be performed in January 2020 . Paid the following expenses in cash: advertising, $200; interest, 150; truck operating, $375; wages, S2,500 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) Received a bill for $100 for electricity used during the month (recorded as utilities expense). n. 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 Prepare journal entries to record the December transactions. General ledger account numbers and descriptions are not needed. Post the entries to general ledger T-accounts. 2. 3.

Common Stock Repair Rent Supplies 6500 Accounts Advertising Telephone Unearned Repair Truck Operating Prepaid Income Taxes Depreciation Insurance Utilities Interest Wages Unused 100 accum, RAR Income Taxes c. 10,000

GENERAL JOURNAL Date PR Debit Common Stock B Prepaid rent 1200 Cash 10,000 10,000 D Supplies expense 1000 1000 Prepaid insurance Cash 1800 1800 Accounts receivable Repair revenue Repaid revenue 500 Advertising expense 350 100 75 425 Telephone expense Truck operating expense Wages expense cash Cash 2000

GENERAL JOURNAL Page Description Debit 6500 Date PR Credit Accounts receivable Repair revenue 6500 No effect Advertising expense Interest expense Truck operating expense Wages expense Cash 200 150 375 2500 Cash Repair revenue 2000 2000 Utilities expense Repair revenue 100 100