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The following items are necessary for preparing the 2024 year-end adjustments for Rogers Advertising Agency. Rogers's fiscal year- end is December 31. 1. On July 1, 2024, Rogers received $4,900 from a customer for advertising services to be given evenly over the next 10 months. Revenues related to other advertising provided during the year total $101,500 2. At the end of the year, income taxes owed are $5,900. These taxes won't be paid until next April 15. 3. On May 1, 2024, the company paid $3,480 for a two-year fire and liability insurance policy. The amount was recorded in Prepaid Insurance on May 1. Insurance costs prior to May total $1,320. 4. On September 1, 2024, the company borrowed $21,000 from a local bank and signed a note. Principal and interest at 9% will be paid on August 31, 2025. 5. At year-end, there is a $2,150 balance in the Supplies account. Only $890 of supplies remains on hand at the end of the year. Required: For each item, determine the accounts to be adjusted on December 31, 2024, the balances before adjustment, the amount of the adjustment, and the ending balances. Assume no adjustments were previously made during the year. Note: Amounts to be deducted should be indicated with a minus sign. 1. Balance before adjustment December 31 Adjustment December 31 Ending balance 2. Balance before adjustment December 31 Adjustment December 31 Ending balance 3. Balance before adjustment December 31 Adjustment December 31 Ending balance 4. Balance before adjustment December 31 Adjustment December 31 Ending balance 5. Answer is not complete. Balance Sheet Account Deferred Revenue Income Tax Payable 0 5,900 5,900 Prepaid Insurance 0 3,480 (1,320) ► 2,160 Interest Payable 0 Supplies 0 Income Statement Account Service Revenue 4,900 (490) X 4,410 Income Tax Expense Insurance Expense 0 0 0 Interest Expense 0 1,890 1,890 Supplies Expense

The following items are necessary for preparing the 2024 year-end adjustments for Rogers Advertising Agency. Rogers's fiscal year- end is December 31. 1. On July 1, 2024, Rogers received $4,900 from a customer for advertising services to be given evenly over the next 10 months. Revenues related to other advertising provided during the year total $101,500 2. At the end of the year, income taxes owed are $5,900. These taxes won't be paid until next April 15. 3. On May 1, 2024, the company paid $3,480 for a two-year fire and liability insurance policy. The amount was recorded in Prepaid Insurance on May 1. Insurance costs prior to May total $1,320. 4. On September 1, 2024, the company borrowed $21,000 from a local bank and signed a note. Principal and interest at 9% will be paid on August 31, 2025. 5. At year-end, there is a $2,150 balance in the Supplies account. Only $890 of supplies remains on hand at the end of the year. Required: For each item, determine the accounts to be adjusted on December 31, 2024, the balances before adjustment, the amount of the adjustment, and the ending balances. Assume no adjustments were previously made during the year. Note: Amounts to be deducted should be indicated with a minus sign. 1. Balance before adjustment December 31 Adjustment December 31 Ending balance 2. Balance before adjustment December 31 Adjustment December 31 Ending balance 3. Balance before adjustment December 31 Adjustment December 31 Ending balance 4. Balance before adjustment December 31 Adjustment December 31 Ending balance 5. Answer is not complete. Balance Sheet Account Deferred Revenue Income Tax Payable 0 5,900 5,900 Prepaid Insurance 0 3,480 (1,320) ► 2,160 Interest Payable 0 Supplies 0 Income Statement Account Service Revenue 4,900 (490) X 4,410 Income Tax Expense Insurance Expense 0 0 0 Interest Expense 0 1,890 1,890 Supplies Expense

FINANCIAL ACCOUNTING
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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The following items are necessary for preparing the 2024 year-end adjustments for Rogers Advertising Agency. Rogers's fiscal year- end is December 31. 1. On July 1, 2024, Rogers received $4,900 from customer for advertising services to be given evenly over the next 10 months. Revenues related to other advertising provided during the year total $101,500 2. At the end of the year, income taxes owed are $5,900. These taxes won't be paid until next April 15. 3. On May 1, 2024, the company paid $3,480 for a two-year fire and liability insurance policy. The amount was recorded in Prepaid Insurance on May 1. Insurance costs prior to May total $1,320. 4. On September 1, 2024, the company borrowed $21,000 from a local bank and signed a note. Principal and interest at 9% will be paid on August 31, 2025. 5. At year-end, there is a $2,150 balance in the Supplies account. Only $890 of supplies remains on hand at the end of the year. Required: For each item, determine the accounts to be adjusted on December 31, 2024, the balances before adjustment, the amount of the adjustment, and the ending balances. Assume no adjustments were previously made during the year. Note: Amounts to be deducted should be indicated with a minus sign. 1. Balance before adjustment December 31 Adjustment December nding balance 2. Balance before adjustment December 31 Adjustment December 31 Ending balance 3. Balance before adjustment December 31 Adjustment December 31 Ending balance 4. Balance before adjustment December 31 Adjustment December 31 Ending balance 5. Balance before adjustment December 31 Adjustment December 31 Ending balance Answer is not complete. Balance Sheet Account Deferred Revenue Income Tax Payable 0 5,900✔ 5,900 Prepaid Insurance 0 3,480✔ (1,320) X 2,160 Interest Payable Supplies 0 0 2,150 (890) X 1,260 Income Statement Account Service Revenue 4,900 X (490) x 4,410 Income Tax Expense Insurance Expense 0 0 0 Interest Expense 0 1,890 X 1,890 Supplies Expense 0 0
Transcribed Image Text:The following items are necessary for preparing the 2024 year-end adjustments for Rogers Advertising Agency. Rogers's fiscal year- end is December 31. 1. On July 1, 2024, Rogers received $4,900 from customer for advertising services to be given evenly over the next 10 months. Revenues related to other advertising provided during the year total $101,500 2. At the end of the year, income taxes owed are $5,900. These taxes won't be paid until next April 15. 3. On May 1, 2024, the company paid $3,480 for a two-year fire and liability insurance policy. The amount was recorded in Prepaid Insurance on May 1. Insurance costs prior to May total $1,320. 4. On September 1, 2024, the company borrowed $21,000 from a local bank and signed a note. Principal and interest at 9% will be paid on August 31, 2025. 5. At year-end, there is a $2,150 balance in the Supplies account. Only $890 of supplies remains on hand at the end of the year. Required: For each item, determine the accounts to be adjusted on December 31, 2024, the balances before adjustment, the amount of the adjustment, and the ending balances. Assume no adjustments were previously made during the year. Note: Amounts to be deducted should be indicated with a minus sign. 1. Balance before adjustment December 31 Adjustment December nding balance 2. Balance before adjustment December 31 Adjustment December 31 Ending balance 3. Balance before adjustment December 31 Adjustment December 31 Ending balance 4. Balance before adjustment December 31 Adjustment December 31 Ending balance 5. Balance before adjustment December 31 Adjustment December 31 Ending balance Answer is not complete. Balance Sheet Account Deferred Revenue Income Tax Payable 0 5,900✔ 5,900 Prepaid Insurance 0 3,480✔ (1,320) X 2,160 Interest Payable Supplies 0 0 2,150 (890) X 1,260 Income Statement Account Service Revenue 4,900 X (490) x 4,410 Income Tax Expense Insurance Expense 0 0 0 Interest Expense 0 1,890 X 1,890 Supplies Expense 0 0
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