Rogers Corporation Unadjusted Trial Balance December 31, 2019 Account
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Problem 3-67A
Adjusting Entries and Financial Statements
You have the following unadjusted
| Rogers Corporation | |||||
| Unadjusted Trial Balance | |||||
| December 31, 2019 | |||||
| Account | Debit | Credit | |||
| Cash | $ 3,100 | ||||
| 15,900 | |||||
| Supplies | 4,200 | ||||
| Prepaid Rent | 9,500 | ||||
| Equipment | 625,000 | ||||
| $ 104,000 | |||||
| Other Assets | 60,900 | ||||
| Accounts Payable | 9,400 | ||||
| Unearned Service Revenue | 11,200 | ||||
| Note Payable (due 2022) | 50,000 | ||||
| Common Stock | 279,500 | ||||
| 37,000 | |||||
| Service Revenue | 598,000 | ||||
| Wages Expense | 137,000 | ||||
| Rent Expense | 229,000 | ||||
| Interest Expense | 4,500 | ||||
| Total | $1,089,100 | $1,089,100 |
At year end, you have the following data for adjustments:
- An analysis indicates that prepaid rent on December 31 should be $2,300.
- A physical inventory shows that $650 of office supplies is on hand.
- Depreciation for 2019 is $35,250.
- An analysis indicates that unearned service revenue should be $3,120.
- Wages in the amount of $3,450 are owed but unpaid and unrecorded at year end.
- Six months' interest at 8% on the note was paid on September 30. Interest for the period from October 1 to December 31 is unpaid and unrecorded.
- Income taxes of $55,539 are owed but unrecorded and unpaid.
2 b. Prepare a retained earnings statement using adjusted account balances. If an amount is zero, enter "0".
| Rogers Corporation | |
| Retained Earnings Statement | |
| For the Year Ended December 31, 2019 | |
| $fill in the blank 7c852ff06fd6fe3_2 | |
| fill in the blank 7c852ff06fd6fe3_4 | |
| fill in the blank 7c852ff06fd6fe3_6 | |
| $fill in the blank 7c852ff06fd6fe3_8 |
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