Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

adjusting entries... 1 Use the following information to prepare adjusting entries for Rochester Enterprise: On February 1, 2019, Rochester Enterprise signed a 4.98% bank loan

adjusting entries...
image text in transcribed
image text in transcribed
1 Use the following information to prepare adjusting entries for Rochester Enterprise: On February 1, 2019, Rochester Enterprise signed a 4.98% bank loan due in 4 years. This is the only outstanding note payable Prepaid insurance represents a 6-month insurance policy purchased on November 1 2 a. 3 b On October 1, 2019, Rochester Enterprise paid $22,140 for a 5-month lease for office space. 4 C. Unearned revenue represents a 12-month contract for consulting services. The payment was received on September 1, 2019 Supplies on hand total $14,230. 6 e Equipment is depreciated on a straight-line basis; residual value is estimated to be $25,000 with an estimated service life of 12 years. The assets were held the On December 1, Rochester Enterprise issued Greene Supplies an 8-month note receivable at a 6.4% annual interest rate. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The aging schedule of accounts receivable must be completed to determine management's desired balance for 2019 Accrued wages totaling $66,789 were unpaid and unrecorded at December 31, 10 i 2010 11j Utility costs incurred but unrecorded for the month of December were estimated to be $4,941 12 13 14 Assumptions: Unadjusted Trial Balance DR 125,214 494,952 Adjustments DR 5 Account Title CR 7 Cash Accounts Receivable 9 Allowance for Doubtful Accounts 20,861 11 Note Receivable 12 Merchandise Inventory 13 Prepaid Insurance 14 Prepaid Rent 15 183,290 361,866 13.284 22,140 56,088 517,092 54,612 17 Accumulated Depreciation - Equipment 18 Accounts Payable 19 Salaries & Wages Payable 20 Unearned Revenue 350,550 270,600 418 200 24 Conmon Stock 25 Retained Earnings 26 Dividends 27 Sales urns and Allo wances29 52n 31 Cost of Goods Sold 32 Salaries & Wages Expense 33 Depreciation Expense Equipment 801,468 36 Rent Expense se 59.286 8 Utilities Expense 39 Interest Revenue 40 Interest Expense 41 42 Net Income 43

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Acca Paper 3.1 Audit And Assurance

Authors: N/a

1st Edition

075172680X, 978-0751726800

More Books

Students also viewed these Accounting questions