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 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.

2019 December Transactions Amount Issued common stock for cash Paid cash for three month’s rent: December 2019, January and February 2020 Purchased a used truck on credit (recorded as an account payable) Purchased supplies on credit. These are expected to be used during the month (recorded as expense) Paid for a one-year truck insurance policy, effective December 1 Billed a customer for work completed to date Collected cash for work completed to date Paid the following expenses in cash 13,000 1,600 2,280 6,000 4,000 c. d. Advertising Interest Telephone Truck operating Wages 700 700 800 600 5,000 1,000 7,000 5,000 i.Collected part of the amount billed in f above Billed customers for work completed to date Signed a contract for work to be performed in January 2020 Paid the following expenses in cash Advertising Interest Truck operating Wages 600 600 900 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) Received a bill for electricity used during the month (recorded as utilities expense) n. 800

2019 December Adjusting Entries Amount o. One month of the prepaid insurance has expired. p. The December portion of the rent paid on December 1 has expired. q Counted supplies and found this amount still on hand (recorded the amount used as an expense) 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. These will be $100 $2,000 $2,900 $100 paid in January. t. One month of depreciation needs to be recorded. Estimated useful life of truck in years is: u. Income taxes expense to be paid in the next fiscal year.

Cash Accounts Payable Repair Revenue Supplies Expense Accounts Receivable Wages Payable Advertising Expense Telephone Expense Unearned Repair Revenue Prepaid Insurance Income Taxes Payable Truck Operating Expense Prepaid Rent Common Stock Insurance Expense Utilities Expense Unused Supplies Interest Expense Wages Expense Acc. Dep’n Truck Income Taxes Expense

Roth Contractors Corporation GENERAL JOURNAL Dec. 2019 Description Debit Credit

Roth Contractors Corporation Adjusted ria Balance At December 31, 2019 Post-closing Trial Balance Accounts Balances Debit Credit # Debit Credit # Debit Credit Account Title 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

Roth Contractors Corporation Income Statement For the Month Ended Dec. 31, 2019 Roth Contractors Corporation Balance Sheet At December 31, 2019 Assets Revenue Expenses Liabilities Roth Contractors Corporation Statement of Changes in Equity For the Month Ended December 31, 2019 Stockholders’ Equity Common stock Retained earnings Total equity Opening balance Ending balance