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 incorrect 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 correctly
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 correctly
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:
Exam One
Directions & Check Numbers
1.
2.
3.
4.
Check your math (add the columns from the bottom up if you continue to get the same totals)
Make sure that all accounts with general ledger balances have been moved to the adjusted trial balance
Verify that you have each amount in the correct column
Check each amount to ensure you have transferred the correct 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 incorrect, check the following account balances to verify that the amounts
are correct. If the amounts are not correct, 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 errors:
1. Check your math
2. Verify that balances were transferred correctly
3. Check that the balances were placed in the correct debit/credit column
1., 3., 4., and 6. – Roth Contractors Corporation
Cash
5000
1800
800
3450
4000
200
4.350
Accounts
Receivable
4500
1000
2000
5.500
Prepaid
Insurance
1800
630
1.170
Accounts Payable
1000
100
Common Stock
5000
Repair Revenue
2000
4500
800
2000
4000
1.100
5000
11.300
Wages Payable
1500
1.500
Advertising
Expense
350
200
550
Rent Expense
-800
Telephone
Expense
75
75
Unearned Repair
Revenue
2000
Depreciation
Expense-Truck
208
2000
208
Truck Operating
Expense
425
375
800
Prepaid Rent
1200
400
800
Unused Supplies
350
350
Truck
10000
10000
Income Taxes
Payable
500
500
Insurance
Expense
630
630
Interest Expense
100
150
250
Income Taxes
Expense
500
500
Utilities Expense
100
100
Wages Expense
2500
2500
1500
6500
Supplies Expense
1000
350
650
Accumulated
DepreciationTruck
208
208
0
2&5
Page ________
GENERAL JOURNAL
Date
A
Description
Cash
PR
Debit
Credit
5.000
Common Stock
B
Prepaid Rent
5.000
1.200
Sevice Revenue
C
Truck
1.200
10.000
Accounts Payable
D
Supplies Expense
10.000
1.000
Accounts Payable
E
Prepaid Insurance
1.000
1.800
Cash
F
Accounts Receivable
1.800
4.500
Repair Revenue
G
Cash
4.500
800
Repair Revenue
H
800
Adversting Expenses
350
Interest Expense
100
Telephone Expense
Truck Operating Expense
Wages Expense
75
425
2.500
Cash
I
Cash
3.450
2.000
Accounts Receivable
J
Accounts Receivable
2.000
2.000
Repair Revenue
2.000
K
No Affect
0
L
Adversting Expense
200
Interest Expense
150
Truck Operating Expense
375
Wages Expense
2.500
Cash
M
Cash
3.225
2.000
Repair Revenue
N
0
Ultilities Expense
Accounts Payable
2.000
100
100
Date
Description
PR
Page______
Credit
Debit
Adjusting Entries
O
Insurance Expense
630
Prepaid Expense
P
Rent Expense
630
800
Prepaid Rent
R
Repair Revenue
800
2.000
Unearned Revenue
S
Wage Expense
2.000
1.500
Wages Payable
T
Depreciation Expense
1.500
208
Depreciation Truck
U
Income Expense
208
500
Tax Payable
500
Page ________
Date
Description
PR
Debit
Credit
Closing Entries
Page ________
Date
Description
PR
Debit
Credit
7&9
Adjusted Trial Balance
Account
Cash
Accounts receivable
Prepaid Insurance
Prepaid Rent
Unused supplies
Truck
Accumulated Depreciation-Truck
Accounts payaable
Wages payable
Income taxes payable
Unearned revenue
Common Stock
Retained earnings
Income summary
Repair revenue
Advertising expense
Depreciation Expense – Truck
Insurance expense
Interest expense
Rent expense
Supplies expense
Telephone expense
Truck Operating expense
Utilities expense
Wages expense
Income taxes expense
Debit
Credit
Totals
0
0
Closing Entries
Debit
Credit
Post-Closing Trial Balance
Debit
0
0
0
Closing Trial Balance
Credit
0
8
Income Statement
Statement of Changes in Equity
Balance Sheet
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
b. Paid $1,200 cash for three months’ rent: December 2019;
January and February 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
be 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.
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,
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
balances.
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.

Purchase answer to see full
attachment