Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

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...

1 answer below »
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 Revenue $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:
    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.
Answered Same Day Jun 23, 2021

Solution

Pallavi answered on Jun 24 2021
127 Votes
1, 3, 4 & 6
        1., 3., 4., and 6. - Roth Contractors Corporation
        Cash                    Accounts Payable                    Common Stock                Repair Revenue
    Stock    5000                        Truck    10000                Cash    5000    UN Rev    2000    Cash    800
    RR    800    Prepaid Rent    1200                SE    1000                        Bal    11800    Cash    2000
    AR    2000    PI    1800                UE    100                                AR    4500
    RR    2000    AD    350                Bal    11100                                AR    6500
            Int    100                                                13800        13800
            Tel    75
            TR OP    425            Rent Expense                    Supplies Expense
            Wag    2500        Prepaid Rent    400                Un Supp    350    Purchases    1000
            AD    200                            used    650
            Int    150                                1000        1000
            TR OP    375
            Wag    2500
            Bal    125
        9800        9800
        Accounts Receivable                    Wages Expense                    Purchases                Advertising Expense                Telephone Expense
    RR    4500                Cash    2500                SE    1000            Cash    350    IS    550    Cash    75    IS    75
    RR    6500    Cash    2000        Cash    2500                                Cash    200
            Bal     9000        O/s Wages    1500                                    550        550
        11000        11000            6500
        Prepaid Insurance                    Unearned Repair Revenue                    Outstanding Wages                Depreciation Expense-Truck                Truck Operating Expense
    Cash    1800    Insurance    150                RR    2000                Wages    1500    ACC Dep    208    IS    208    Cash    425    IS    800
            Bal     1650                                                            Cash    375
        1800        1800                                                                800        800
        Prepaid Rent                    Income Taxes Payable                    Accumulated Depreciation-Truck                Insurance Expense                Utilities Expense
    Cash    1200    Rent    400                ITE    500                Dep     208    Prepaid Insurance    150    IS    150    AP    100
            Bal     800
        1200        1200
        Unused Supplies                        Truck                Income Taxes Expense                Interest...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here