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. 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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