Illustration: Roth Contractor Corporation was incorporated on December 1, 2019 and had following transactions during December 1 Dec Issued Capital for 5000 cash 3 Dec Paid 1200 cash for three months rent in advance 4 Dec Purchased a used truck for 10,000 on credit 4 Dec Purchased Supplies of 1000 on credit 6 Dec Paid 1800 for a one-year truck insurance policy 7 Dec Billed a customer 4500 for work completed to date 8 Dec Collected 800 for work completed to date 12 Dec Paid the following expense in cash Advertisement 350 Interest 100 Telephone 75 truck operating 425 Wages 2500 15 Dec Collected 2000 of the amount billed on 7 dec 18 Dec Billed Customer 6500 for work completed to date 19 Dec Signed a 9000 contract for work to be performed in Jan 2017 22 Dec Paid the following Expenses Advertisement 200 Interest 150 Truck Operating 375 Wages 2500 27 Dec Collected advance on work to be done in January 28 Dec Received a bill for 100 for electricity used during the month Additional Information The following information relates t0 31 Dec , 2016 One month of the prepaid insurance has expired The December portion of the rent paid is expired A physical count indicates that 350 of supplies is still on hand The amount collected as advance is unearned Three days of wages for Dec 29 30 31 are unpaid: Unpaid amount of 1500 will be included in first wages payment in Jan The truck has an estimated useful life of 4 years Income tax expenses are 500. The amount is to be paid next year Question # 1. Prepare transaction summary. Question # 2. Prepare general journal Question # 3. Post entries to ledger accounts Question # 4. Prepare trial balance Question # 5. Pass adjusted entries Question # 6. Prepare adjusted trial balance Question # 7. Prepare financial statement. (Income Statement, Owners Equity, Balance Sheet) Question # 8. Close temporary accounts Question # 9. Prepare post closed trail balance. Question # 10. Prepare worksheet.
Illustration: Roth Contractor Corporation was incorporated on December 1, 2019 and
had following transactions during December
1 Dec Issued Capital for 5000 cash
3 Dec Paid 1200 cash for three months rent in advance
4 Dec Purchased a used truck for 10,000 on credit
4 Dec Purchased Supplies of 1000 on credit
6 Dec Paid 1800 for a one-year truck insurance policy
7 Dec Billed a customer 4500 for work completed to date
8 Dec Collected 800 for work completed to date
12 Dec Paid the following expense in cash
Advertisement 350
Interest 100
Telephone 75
truck operating 425
Wages 2500
15 Dec Collected 2000 of the amount billed on 7 dec
18 Dec Billed Customer 6500 for work completed to date
19 Dec Signed a 9000 contract for work to be performed in Jan 2017
22 Dec Paid the following Expenses
Advertisement 200
Interest 150
Truck Operating 375
Wages 2500
27 Dec Collected advance on work to be done in January
28 Dec Received a bill for 100 for electricity used during the month
Additional Information
The following information relates t0 31 Dec , 2016
One month of the prepaid insurance has expired
The December portion of the rent paid is expired
A physical count indicates that 350 of supplies is still on hand
The amount collected as advance is unearned
Three days of wages for Dec 29 30 31 are unpaid: Unpaid amount of 1500 will be
included in first wages payment in Jan
The truck has an estimated useful life of 4 years
Income tax expenses are 500. The amount is to be paid next year
Question # 1. Prepare transaction summary.
Question # 2. Prepare general journal
Question # 3.
Question # 4. Prepare trial balance
Question # 5. Pass adjusted entries
Question # 6. Prepare adjusted trial balance
Question # 7. Prepare financial statement. (Income Statement, Owners Equity, Balance
Sheet)
Question # 8. Close temporary accounts
Question # 9. Prepare post closed trail balance.
Question # 10. Prepare worksheet.
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