ACC111 Redesign Exam One
Directions & Check Numbers
This is comprehensive exam covers all steps in the accounting cycle. I cannot stress enough that you
should start early in the week to be success in completing the exam. Only providing yourself with a day
or two to complete will prove to be a difficult task.
You must use the workbook pages to complete the exam, as you will have to submit the completed
problem for a grade. The directions to complete the exam are in the attached file. Please follow them
closely and complete all parts. For your reference, there is a similar problem (CP 3-7) located at the end
of Chapter 3 that can be used to help you.
I have provided “check numbers” below after you complete each requirement. It is important that you
check your work using these numbers before moving on, as future work may be inco
ect if your
numbers do not match the check numbers provided.
Good Luck!!
Part A, Requirement #3
After posting all transactions, please calculate the ending balance for each t-account. Then check your
ending balances for each of the following accounts:
Cash $125 Accounts Receivable $9,000 Accounts Payable $11,100
Repair Revenue $13,800 Interest Expense $250 Wages Expense $5,000
****If the ending balances do not match, complete the following steps:
1. Check your math
2. Verify that you have posted your transactions co
ectly
3. Re-evaluate your journal entries
Part B, Requirement #6
After posting the adjusting entries, please calculate the ending balance for each t-account. Then check
your ending balances for each of the following account:
Prepaid Rent $800 Unearned Repair Revenue $2,000 Accum Dep’n Truck $208
Repair Revenue $11,800 Insurance Expense $150 Wages Expense $6,500
If the balances do not match, complete the following steps:
1. Check your math
2. Verify that you have posted your transactions co
ectly
3. Re-evaluate your journal entries
Part B, Requirement #7
After preparing the adjusted trial balance, the totals of the debit and credit columns should be $32,108
If the debit and credit column totals do not match, complete the following steps:
ACC111 Redesign Exam One
Directions & Check Numbers
1. Check your math (add the columns from the bottom up if you continue to get the same totals)
2. Make sure that all accounts with general ledger balances have been moved to the adjusted trial balance
3. Verify that you have each amount in the co
ect column
4. Check each amount to ensure you have transfe
ed the co
ect amount from each account
Part B, Requirement #7, #8
#7 – (Income Statement) Net Income $1,617
#8 (Statement of Changes in Equity)
Common Stock $5,000; Retained Earnings $1,617; Total Equity $6,617
#8 (Balance Sheet)
Total Assets $21,717
Total Liabilities $15,100
Total Stockholders’ Equity $6,617
Part B, Requirement #9
TIP:
Don’t forget which accounts temporary and which ones are permanent. Remember, temporary
accounts must have a ZERO balance after the closing process is complete.
Post-Closing Trial Balance – Debit/Credit Totals $21,925
If the debit/credit total is inco
ect, check the following account balances to verify that the amounts
are co
ect. If the amounts are not co
ect, go back and check your work.
Prepaid Insurance $1,650 Unused Supplies $350 Acc dep – Truck $208
Unearned repair revenue $2,000 Retained Earnings $1,617
To find e
ors:
1. Check your math
2. Verify that balances were transfe
ed co
ectly
3. Check that the balances were placed in the co
ect debit/credit column
ACC111 - Exam One
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
. Paid $1,200 cash for three months’ rent: December 2019;
January and Fe
uary 2020
c. Purchased a used truck for $10,000 on credit (recorded as an
account payable)
d. Purchased $1,000 of supplies on credit. These are expected to
e used during the month (recorded as expense)
e. Paid $1,800 for a one-year truck insurance policy, effective
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, $75; truck operating, $425; wages, $2,500
i. Collected $2,000 of the amount billed in f above
j. Billed customers $6,500 for work completed to date
k. Signed a $9,000 contract for work to be performed in January
2020
l. Paid the following expenses in cash: advertising, $200; interest,
$150; truck operating, $375; wages, $2,500
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)
n. Received a bill for $100 for electricity used during the month
(recorded as utilities expense).
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.
2. Prepare journal entries to record the December transactions.
General ledger account numbers and descriptions are not needed.
3. Post the entries to general ledger T-accounts.
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.
. The amount collected in transaction m is unearned at December
31.
s. 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
next fiscal year.
Required:
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.
5. Prepare all necessary adjusting entries. General ledger account
numbers and descriptions are not necessary.
6. Post the entries to general ledger T-accounts and calculate
alances.
7. Prepare an adjusted trial balance at December 31.
8. Assume the fiscal year-end is December 31, 2019. Prepare an
income statement, statement of changes in equity, and balance
sheet.
9. Prepare closing entries and a post-closing trial balance at
December 31, 2019.