You have
the following unadjusted trial balance (illustrated in Chapter 3) for Rogers Corporation
at December 31, 19x6:

At year-end, you have the following data for adjustments:
a) An analysis indicates that prepaid rent on December 31 should be $7,900.
b) A physical inventory shows that $1,100 of office supplies is on hand.
c) The equipment is being depreciated over an expected life of 7 years with a residual
value of $30,000. Straight-line depreciation is used.
d) An analysis indicates that unearned revenue should be $8,400.
e) Wages in the amount of $2,800 are owed but unpaid and unrecorded at year-end.
f) Six months’ interest at 9% on the note was paid on September 30. Interest for the
period from October 1 to December 31 is unpaid and unrecorded.
g) Income taxes at 30% are owed but unrecorded and unpaid.
REQUIRED:
1. Prepare the adjusting entries.
2. Prepare an income statement, a statement of changes in retained earnings, and a
balance sheet using adjusted account balances.

Transcribed Image Text:

ACCOUNT Cash Accounts receivable Office supplies inventory Prepaid rent ROGERS CORPORATION Unadjusted Trial Balance As of December 31, 19x6 DEBIT 3,100 Equipment Accumulated depreciation, equipment Other assets Accounts payable Unearned revenue Note payable (due 19x9) Capital stock CREDIT 15,900 4,200 9,500 625,000 $ 104,000 60,900 9.400 11,200 50,000 279,500 37,000 598,000 Retained earnings, 12/31/x5 Service revenue Wages expense Rent expense Interest expense Totals 137,000 229,000 4,500 $1,089.100 $1,089,100