You have the following unadjusted trial balance for Rogers Corporation at December 31, 2019: Rogers Corporation Unadjusted Trial Balance December 31, 2019 Account Debit Credit Cash $ 3,100 Accounts Receivable 15,900 Supplies 4,200 Prepaid Rent 9,500 Equipment 625,000 Accumulated Depreciation $ 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 Retained Earnings, 12/31/2018 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. Required: 1. Prepare the adjusting entries. Dec. 31 fill in the blank 97d469f3afccf88_2 fill in the blank 97d469f3afccf88_4 (Record use of prepaid rent) Dec. 31 fill in the blank 97d469f3afccf88_6 fill in the blank 97d469f3afccf88_8 (Record use of supplies) Dec. 31 fill in the blank 97d469f3afccf88_10 fill in the blank 97d469f3afccf88_12 (Record depreciation on equipment) Dec. 31 fill in the blank 97d469f3afccf88_14 fill in the blank 97d469f3afccf88_16 (Record earned revenue) Dec. 31 fill in the blank 97d469f3afccf88_18 fill in the blank 97d469f3afccf88_20 (Record wages owed to employees) Dec. 31 fill in the blank 97d469f3afccf88_22 fill in the blank 97d469f3afccf88_24 (Record accrued interest) Dec. 31 fill in the blank 97d469f3afccf88_26 fill in the blank 97d469f3afccf88_28 (Record income taxes owed)
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
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.
Required:
1. Prepare the adjusting entries.
| Dec. 31 | fill in the blank 97d469f3afccf88_2 | ||
| fill in the blank 97d469f3afccf88_4 | |||
| (Record use of prepaid rent) | |||
| Dec. 31 | fill in the blank 97d469f3afccf88_6 | ||
| fill in the blank 97d469f3afccf88_8 | |||
| (Record use of supplies) | |||
| Dec. 31 | fill in the blank 97d469f3afccf88_10 | ||
| fill in the blank 97d469f3afccf88_12 | |||
| (Record depreciation on equipment) | |||
| Dec. 31 | fill in the blank 97d469f3afccf88_14 | ||
| fill in the blank 97d469f3afccf88_16 | |||
| (Record earned revenue) | |||
| Dec. 31 | fill in the blank 97d469f3afccf88_18 | ||
| fill in the blank 97d469f3afccf88_20 | |||
| (Record wages owed to employees) | |||
| Dec. 31 | fill in the blank 97d469f3afccf88_22 | ||
| fill in the blank 97d469f3afccf88_24 | |||
| (Record accrued interest) | |||
| Dec. 31 | fill in the blank 97d469f3afccf88_26 | ||
| fill in the blank 97d469f3afccf88_28 | |||
| (Record income taxes owed) |
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