a. 10 c. 11 Although entries have been recorded all year, adjusting entries have not been recorded since December 31, 2018 when the financial statements were last prepared. Refer to the Worksheet (1) tab for unadjusted account balance information as of December 31, 2019. Use the following information to help in preparing adjusting entries for Rochester Enterprise. On September 1, 2019, Rochester Enterprise had signed a 6.6% bank loan (refer to the workshoet) due in 4 years. This is the only outstanding note payable. B. Prepaid insurance represents a 6-month insurance policy purchased on December 1, 2019. On September 1, 2019, Rochester Enterprise paid $30,000 for a 5-month louse for office space. 12 d. Unearned revenue represents a 12-month contract for consulting services that will be performed monthly. The payment from the customer was received on December 1, 2019. 13 A physical count revealed that supplies on hand at the end of the month total 56,777. Equipment is depreciated on a straight-line basis, residual value is estimated to be $25,000 with an estimated service life of 5 years. The sets were held the entire your B On December 1, Rochester Enterprise accepted from Greene Supplies a 7-month note receivable at a 4.7% annual interest rate. The company wes the percentage-of-receivables basis for estimating uncollectible account. The aging shodule of accounts receivable must be completed to determine management's desired balance for 2019 14 c. 18 17 18 20 21 Accrued wages totaling $53,000 were unpaid and unrecorded at December 31, 2019. Utility costs incurred but unrecorded for the month of December were estimated to be 55,000 23 24 25 20 27 B C D End of Period Worksheet For the Year Ended December 31, 2019 Unadjusted Trial Balance Adjustments DR CR DR CR 136, 789 378.956 16,782 Adjusted Trial Balance DR CR Income Statement DR CR Balance Sheet DR CR 150,000 361,866 60,000 30,000 46,777 400,000 75,000 51,709 24,000 3 4 5 Account Title 6 7 Cash & Accounts Receivable 9 Allowance for Doubtful Accounts 10 Interest Receivable 11 Not Receivable 12 Merchandise Inventory 13 Prepaid Insurance 14 Prepaid Rent 15 Supplies 16 Equipment 17 Accumulated Depreciation. Fouipment 18 Accounts Payable 19 Salaries & Wars Payable 20 Uncamad Revenue 21 Interest Payable 1 22 Utilities Payable 23 Note Payable (final payment due 2023) 24 Common Stock 25 Retained Earnings 26 Dividends 27 Sales 28 Consulting Revenue 29 Sales Returns and Allowances 30 Sales Discounts 31 Cost of Goods Sold 32 salaries & Was Expense 33 Depreciation Expense quipment 34 Detape 35 Trance Expense 30 Rent Expense 37 Supplies Expense 30 Utilities expense 30 Les Revenue 40 Interest pense 41 350,000 270,600 424,500 120,000 4,050,864 35.933 300.000 100.000 1.950,000 1,200,000 1 Prepare the Aging Schedule to determine the adjustment required for the allowance method for bad debt: 2 Balance December 31, 2019 Estimated % Uncollectible Estimated Amount Uncollectible 3 Age of Accounts 4 Current 187,616 2% $ 3,752.00 5 1-30 days past due 125,705 5% 6,285 4,241 6 31-90 days past due 7 Over 90 days past due 8 Total Accounts Receivable 35,345 30,290 12% 30% 9,087 23,366 $ 9 10 11
